A10 Capital launches loan workout group 

Boise-based A10 Capital, a financial services firm that specializes in troubled-loan “workouts” and in alternative commercial real estate lending, on March 19 announced the formation of its Solutions Group. The group provides loan workout, REO (real estate owned) asset management and related services to banks that have troubled credits.

Most small and midsized banks do not have the in-house staff to handle loan workouts, which are becoming more prevalent in today’s markets, A10 Capital Chief Operating Officer and Chief Risk Officer Dale Conder said in a release.

Conder, who leads the A10 Solutions Group, is former head of KeyBank’s Western Asset Recovery Group. He has more than 25 years of loan workout and turnaround experience, dating back to the days of the Resolution Trust Corp., formed in response to the savings and loan crisis.

He said A10, founded about two years ago in anticipation of a fallout in the capital markets, is one of the only firms with a dedicated troubled-loan service team to assist small and medium-sized banks.

“Many banks are taking salespeople off the line who are not experienced at resolving complex troubled credits,” Conder said. “Banks can outsource this function to us on a project basis, which makes it much more affordable for them and enables them to keep their marketing personnel in new business development roles.”

The A10 Solutions Group’s consulting-based services include loan workout consulting; proactive monitoring of loans; loan sale advisory services; and turnkey asset management for REO property, providing many of the functions that a large commercial real estate firm would provide, the release said.

A10 Capital also offers capital-based services for resolving troubled credits, such as buying notes directly – at more reasonable discounts than “vulture / opportunity” funds, the firm said – providing financing for commercial REO purchases, and providing funding for declined commercial real estate loans as well as a referral fee to banks. According to A10, the firm has raised more than $100 million in capital over the past two years to assist regional banks with troubled credits and to assist commercial real estate investors with distressed properties.

A combination of private and institutional capital backs A10, “which gives us the flexibility to fund commercial real estate loans that don’t meet banks’ underwriting criteria and to directly purchase certain sub-performing loans from banks,” CEO Jerry Dunn said in the release. “Because we have been patient in deploying our capital, we have significant ‘dry powder’ to assist banks with troubled credits. And because we are not a bank, we don’t compete with banks for other services such as deposits, trusts, etc.”

NEW! Online only subscription. 24/7 access to premium online subscriber content for only $79.00 a year!
CLICK HERE TO SIGN UP TODAY!

Comments are closed.