Acquisition of a stressed non-bank RE financier by a Global Alternative Investments Firm (“Investor”)
A local non-bank RE financier (“Lender”), with an AUM of ~US$0.9Bn, defaulted on its debt obligations in Sep 2019. The secured creditors (25+ creditors with an aggregate exposure of ~US$0.5Bn) took control of the Lender through a steering committee and invited bids for the platform / its assets. They received bids from five investors of which two investors (including the Certus partnered Investor) went to the final round and submitted binding bids. The competing bid won by a marginal difference.
Certus acted as the operating partner to the Investor, undertaking detailed underwriting and diligence of the Lender’s RE loan portfolio and devising a platform turnaround plan.
