Capital Structure will Support Directed Capital’s Ongoing Acquisition, Management and Repositioning of Distressed Commercial Mortgage Loans Nationwide in the $1 Million to $10 Million Range
SAN DIEGO & ST. PETERSBURG, Fla., Nov 27, 2012 (BUSINESS WIRE) —
Directed Capital, a national distressed asset workout specialist firm that opportunistically acquires, manages and resolves distressed commercial mortgage loans in the $1 million to $10 million range, today announced the closing of its sixth investment fund with $50 million in equity, which will be paired with a $50 million revolving credit facility the firm received in August from Goldman Sachs Bank USA (GS Bank).
This capital structure, including a $34 million term loan that Directed Capital received from Goldman Sachs in August, will be used to finance Directed Capital’s new acquisitions during the next three years. Specifically, the $34 million term loan will be used to refinance assets that Directed Capital currently owns in a prior fund. In addition to this, GS Bank will have the first option to increase the revolving line by $20 million for other new acquisitions.
Since Directed Capital was established in 2001, the company has successfully closed six funds, raising more than $140 million in equity, and has acquired morethan $650 million in assets. Directed Capital is known for generating superior returns that outperform the market by operating in a niche space and using a customized investment process that involves deploying capital into well-diversified asset classes and geographies.
“At Directed Capital, we solve a critical problem that exists in the market. Our work helps the many Americans who own small- to mid-sized businesses – which are the backbone of our nation’s economy – and may be struggling to avoid foreclosure from lenders who are not able to effectively work through their problems,” said Directed Capital’s CEO Chris Moench, who has specialized for almost 20 years in buying distressed debt. “Many borrowers say we’re the best thing that has happened to them because we provide the solutions during their difficult situation that others cannot offer. We take pride that our work at Directed Capital is not only lucrative for our investors – it truly serves a greater good.”
Operating in the alternative investment space, Directed Capital has consistently provided its investors with superior returns that are traditionally uncorrelated with themarket. Unlike most banks and other lenders that typically sell or foreclose on loans when borrowers hit a rough patch, Directed Capital acquires these distressed loans and works closely with the borrowers to help them get their loans back on track. The firm has a dedicated team of 20 experienced professionals at its offices in St. Petersburg, Fla., and San Diego who manage all aspects of the process in-house. Specifically, here’s how Directed Capital’s process works: The firm leverages its extensive network of professional contacts to identify unique opportunities, focusing exclusively on assets that have solid collateral with strong cash flows and favorable collateral values versus loan balances. Its experienced mortgage and real estate investment professionals act nimbly, without obstruction from the bureaucratic procedures that limit banks and other lenders. Its portfolio managers develop practical, effective loan workout solutions, build solid relationships with borrowers, and develop plans to reposition the loans so they can re-access traditional financing channels. As a responsible market participant, Directed Capital contributes to the health of the financial system.
About Directed Capital
Directed Capital Resources (Directed Capital) is a national distressed asset workout specialist firm that opportunistically acquires, manages and repositions distressed commercial mortgage loans in the $1 million to $10 million range. Operating in the alternative investment space, Directed Capital is known for consistently providing its investors with superior returns that are traditionally uncorrelated with the market. Founded in 2001 by professionals with decades of industry experience, Directed Capital has closed six funds, raising more than $140 million in equity, and has acquired more than $650 million in assets. Directed Capital, with 20 professionals at its offices in St. Petersburg, Fla., and San Diego, leverages its extensive network to source deals and seize unique opportunities. For more information, visit www.DirectedCapital.com.