Asset Recovery Fund
SECURED LOAN ACQUISITION PROGRAMS
In 1992, we created the entity Asset Recovery Fund (“ARF”) whose primary purpose was to invest in non-performing, delinquent, and foreclosed loans secured by real estate assets. These loans secured by real estate assets included residential, multi-family, commercial, office, and industrial properties. These real estate secured loans were purchased directly for programs created by ARF and through partnerships/joint ventures with other entities (i.e. Resolution Trust Corporation (“RTC”)/Federal Deposit Insurance Corporation (“FDIC”)/Federal Housing Authority (“FHA”), as well as institutional partners (i.e. Credit Suisse, Goldman Sachs, Baupost Group).
During the underwriting process, the team analyzes the investment in non-performing, delinquent, and foreclosed loans secured by real estate assets. We would determine what business model would provide the highest value for the investment. The business model would forecast immediate access to the underlying property secured by these loans or forecast a workout of the non-performing loans. The overall objective is to maximize value of each loan acquired and hence to maximize the value of the acquired portfolio. In addition to realizing value from the underlying collateral, we will also pursue collection from the guarantors, if that appears to be a viable plan.