Portfolio sales can be particularly attractive to vendors looking to cap their exposure and either release capital, or reduce the risk that further capital will be needed to support under-performing loans. Other interested parties include lenders exiting a jurisdiction or asset class, mortgagee’s in possession, or the administrators of failed ventures.
Another area of interest for BCM is mortgage and asset backed securities which grew strongly between 2000 – 2007. Many of those securities are now classed as illiquid which potentially impedes owners from funding them efficiently.
BCM understands the complex credit and liquidity issues within these securities and how to price them accordingly, or manages them on behalf of their owners to optimise returns.
When BCM undertakes asset purchases it usually teams up with a capital partner to fund the acquisition, while co-investing in each transaction to ensure interests are aligned. Bluestone Servicing will be engaged to undertake the asset servicing of the portfolio.
In particular Bluestone’s expertise in managing tougher books means financial performance is optimised. This is reflected in the price Bluestone achieves when bidding for loan books. Total recovery on a sale to BCM, even at a discount, may well be higher than a managed wind-down.
BCM can acquire operating businesses as well as asset pools, particularly where there is a servicing team in place currently managing the assets.