Institutional
Our Process
We have standard processes that we follow for our acquisitions; however, we do work with clients to align our process with theirs. From supporting the development of an NPL sales strategy to due diligence and closing the deal, we work with our clients to ensure transparency, certainty, and satisfaction. Scroll down to learn more about our process.
Strategy
At the inception of any client engagement, we try to understand their needs. Whether they are early in the process of deciding whether to dispose of non-performing loans or have already made that decision, we can tailor our approach to the needs of our clients.
Our clients typically prefer we get involved once the organizational decision to dispose of non-performing loans has been made. However, we can support clients in portfolio segmentation, recovery and exit strategies. Alternatively, for those clients that have already made the decision to sell, we can help with preparing debt portfolios for sale. During the early phases of the process this can include the following considerations:
- Data Quality & Accuracy
- Investor Motivation
- Market Timing
- Collateral Valuations
- Title Security & Lien Perfection
Bid
Our existing relationships with partners in the real estate industry allow us to address data gaps during the strategy phase and the improve the speed at which we can provide an indicative offer. We also consider the deal structure and provide options for our clients to consider.
The deal structure may include jumbo portfolio sale, segmented sale, profit sharing, and other approaches that meet our clients’ needs.
One of the key performance metrics that we use to measure success during this step in the process is the bid/ask spread. The closer we are to our clients’ price expectations, the greater the chances of success for all stakeholders.
Due Diligence & Negotiation
Once we have come to an agreement on the NPL valuation and price, our team will initiate due diligence on the NPL properties. Because we do a lot of work up front, we can complete this phase fairly quickly (depending on the size of the portfolio).
Of course, much of this depends on the quality of the information our clients provide; however, as mentioned earlier, we aim to resolve data issues early in the process in order to streamline later stages of the process.
If our due diligence does uncover unexpected issues, we work with our clients to address them and negotiate a final price and deal structure that works for everyone involved. A key metric that we use to measure our performance is the amount of repricing required during due diligence. Our goal is to minimize this for the benefit of our clients.
Closing
Speed and completion of closing is another key metric that we use to measure our performance. We aim to make this phase of the process one of the fastest in the overall lifecycle of the sale. Our investment fund and partnerships with accredited investors allows us to fund and close a deal quickly, transparently, and with minimal hassle. Clients have told us that certainty at this point in the process is of vital importance.
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