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Statebridge secures new investment partner, stages break from IAS

Specialty servicer distances itself from rumors of IAS' bankruptcy

Specialty servicer Statebridge Co. signed a deal with FrontRange Capital Partners, securing enough of an investment from the firm to restructure Statebridge, breaking it away from the financial influence of Integrated Asset Services (IAS).

Statebridge did not disclose the size of FrontRange Capital’s investment, but noted it’s enough to repurchase 100% of IAS’s current ownership interest in Statebridge. It also gives the firm a strong enough balance sheet to qualify for Fannie Mae andFreddie Mac servicing and provides enough financial leverage to upgrade its operating platform, personnel and technology.

Statebridge’s leadership founded the firm five years ago in the midst of the subprime meltdown, sensing opportunity in the specialty servicing business.  

"In a relatively short period of time, we have built one of the leading special servicers in the industry," said Kevin Kanouff, president and CEO of Statebridge. "With this investment from FrontRange, we plan to accelerate that growth by making strategic investments in our people and systems, as well as becoming a GSE servicer."

It’s the foresight of the Statebridge management team that attracted FrontRange to the company.

"We have known the Statebridge principals for many years and have been impressed by their proven ability to build an exceptional team and platform," said David Robertson, CEO of FrontRange. "Management continues to own a significant stake in Statebridge, and we look forward to partnering with them to invest in the growth of the business."

The firm's attempt to negate the financial influence of IAS comes at a time when IAS is trying to restructure to pay contractors who claim the default managemant and valuation firm owes money. Reports suggest IAS is trying to restructure $11.5 million in secured debt held by Bank of America (BAC) to obtain the funds to pay contractors.

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