SilverLeaf Looking For More Distressed Assets

SilverLeaf Financial, like some other institutions, is looking to capitalize on the growing volume of distressed assets. The firm said recently it’s seeking to raise more money in order to take on $100m in Federal Deposit Insurance Corp. (FDIC) funds, in addition to the $40m it already holds. “Our goal is to align ourselves with the right investment funds, because we’re very focused on purchasing more assets from the FDIC,” said Shane Baldwin, CEO of SilverLeaf. In the past, the company has raised money on a deal-to-deal basis, using their own capital to pay the 10% deposit required by FDIC bid award winners. Now, SilverLeaf says it will seek commitments from accredited investors and institutional investors prior to bidding, in attempt to make the strategy more systematic. Currently, SilverLeaf holds 11 pools consisting of 17 loans from the FDIC. The company says 10 of these loans have been successfully worked out, while the others are “in the process,” all of which add up to $80m in face value notes from the FDIC. SilverLeaf says its exit strategies include assisting the borrower in the refinancing process through various programs, obtaining a Deed in Lieu of Foreclosure and taking possession of the underlying collateral, managing the foreclosure process to expedite monetization when necessary, and aggressively pricing and marketing the foreclosed property, targeting a 30 to 60-day fire sale. Write to Kelly Curran.

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