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Goldman Sachs Supports Directed Capital’s Acquisition of Loan Portfolio From FDIC

May 02, 2018, 07:22 AM
Filed Under: Real Estate

Directed Capital, a national opportunistic real estate finance firm that acquires and strategically repositions underperforming commercial mortgage loans, announced Goldman Sachs has increased its credit facility to $150 million to facilitate the acquisition of an $80 million loan portfolio from the Federal Deposit Insurance Corporation (FDIC).
The portfolio, consisting of first lien commercial mortgages originating from a failed bank that the FDIC took over in 2017, presented DCR Mortgage Partners VII, LP with an opportunity to acquire a large book of performing and underperforming loans at a discount. The firm will now work diligently to successfully resolve the assets and create value for the partnership, while providing the borrowers flexibility to work out their debt, and in many cases help to continue their business operations.

“At Directed Capital we are always looking to provide solutions for Main Street that traditional lenders do not have the capability or flexibility to assist with,” said Directed Capital’s CEO Chris Moench, who has specialized in acquiring and repositioning debt for more than 25 years, “With the increase to our credit facility from our longtime lender Goldman Sachs, we were able to acquire these FDIC loans and expect to continue our long tradition of helping borrowers re-access traditional financing channels, while providing investors with superior returns typically uncorrelated with the market.

Celebrating 17 years in business, Directed Capital has, since 2001, successfully sponsored eight funds, raising more than $225 million in equity and acquiring more than $1.3 billion in underperforming commercial real estate mortgage loans. The loans, ranging from $1 million to $10 million, are diversified by geography and asset class nationwide. The firm pays returns to investors that consistently out-perform the market, while helping commercial property owners restructure their payments and continue with their business.

Unlike banks and other lenders that typically foreclose on loans when borrowers hit a rough patch, Directed Capital opportunistically acquires underperforming loans from lenders and assigns its team of 35 full-time experienced professionals and portfolio managers to develop practical, effective loan workout solutions, build solid relationships with borrowers and develop plans to reposition the loans. By collecting the full amount of the loans, plus interest from the borrowers over time, Directed Capital helps small and middle-market businesses stay afloat and creates superior returns for its investors.

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