A10 Capital Adds Bank Solutions Group and Raises Over $100 Million to Help Banks Resolve Troubled Credits
Workout Veteran to Lead A10's Bank Solutions Group
Boise, ID. March 19, 2009 – A10 Capital, a leading financial services firm specializing in troubled loan workouts and alternative commercial real estate lending, announced today the establishment of its Solutions Group to provide loan workout, REO asset management and other related services to banks with troubled credits. A10's Bank Solutions Group will be led by Dale Conder, the former head of KeyBank's Western Asset Recovery Group, who has over 25 years of loan workout and turnaround experience dating back to the late 1980s during the days of the Resolution Trust Corp. (RTC). Mr. Conder has been involved in over 100 bankruptcy cases in jurisdictions throughout the country and has managed various distressed debt operations during his career. A10 also announced that it raised over $100 million in capital over the past two years to assist regional banks with troubled credits and commercial real estate investors with distressed properties.
"A10 Capital was founded by a group of visionary commercial real estate and commercial lending veterans who correctly predicted there would be a fallout in the capital markets which would lead to a significant correction," said Dale Conder, COO & Chief Risk Officer, A10 Capital. "A10 is one of the only firms with a dedicated troubled loan service team to assist small to medium sized banks. Most banks of this size do not have the in-house staff to handle loan workouts which are becoming more prevalent in today’s markets. Many banks are taking salespeople off the line who are not experienced at resolving complex troubled credits. Banks can outsource this function to us on a project basis, which makes it much more affordable for them and enables them to keeptheir marketing personnel in new business development roles." A10's team has 100 years and over $20 billion of combined commercial real estate and commercial lending experience. A10's Bank Solutions Group offers the following services to banks:
Advisory Based Services
- Loan Workout Consulting. Allows community banks and credit unions access to A10's professional workout team on a project basis to resolve troubled loans, giving them access to a seasoned workout team at a variable cost. A10 has deep experience working out commercial real estate loans, C&I (business) loans, equipment loans, restaurant loans, agricultural loans, and corporate aircraft loans.
- Asset Management for REO Property. Provides turnkey Asset Management services for bank REO properties. To maximize the property, A10's Asset Management Team provides many of the functions of a large commercial real estate firm including: Property Management Oversight, Leasing and Sales Oversight, Accounting/Reporting/Analysis, Legal Oversight, Capital Budget, and Bank Management and Regulator Analysis.
- Loan and Portfolio Review. Establishes a forward-looking view of each loan to help banks develop appropriate loss mitigation strategies well before a loan goes into default.
- Loan Sale Advisory. A comprehensive program to sell loans that may be causing some regulatory or reserve constraints. Unlike some of the large loan sale advisory firms that focus on the largest loan pools, A10 helps small and medium-sized banks sell single loans and small loan pools.
Capital Based Services to Resolve Troubled Credits
- Direct Note Purchases. As a direct note buyer, A10 offers more reasonable discounts than vulture/opportunity funds, and can close in less than 30 days. A10 offers banks the best terms on subperforming commercial real estate loans.
- Funding For Declined or Maturing Loans. By referring declined or maturing commercial real estate loans to A10 Capital, banks can earn fee income from the referral and solidify a customer relationship by providing a financing solution to bridge a tough situation.
- Financing for REO Purchases. A10 Capital provides creative financing for purchasers of REO commercial property. A10’s quick decisions and fast closing can help the bank close a REO disposition before the buyer gets cold feet.
"Dale Conder's 25 years of experience in loan workout and REO asset management gives A10's Bank Solutions Group the ability to offer best in class advisory services to our bank clients. Because A10 also has the ability to bring capital to a distressed situation, we are uniquely positioned to further assist banks in resolving troubled credits. We are starting to deploy our significant "dry powder" to directly purchase certain sub-performing loans, fund commercial real estate loans that don't meet bank’s underwriting criteria, and to finance REO sales," said Jerry Dunn, CEO, A10 Capital. And because we are not a bank, we don't compete with banks for other services, such as deposits, trusts, etc."
About A10 Capital
A10 Capital is a fully integrated firm that finances commercial real estate and provides advisory and management services for the workout of all types of troubled loans and real estate assets. A10’s seasoned and proven team has closed $30 billion of commercial transactions and brings a track record of successfully operating in distressed environments dating back to opportunities arising from the Resolution Trust Corporation in the 1980s. A10 leverages the skill set of its platform and team to operate in three complementary lines of business.
- Senior Lending. Senior loans on commercial real estate ranging from $500,000 to $10 million. Loans are held on balance sheet and serviced in-house. Loan types include mini perms for lease-up situations, “nearly bankable” loans for situations just outside of bankable structures, and note purchase loans for performing and distressed debt purchases.
- Opportunity Fund. Opportunistic investments through a separate private equity fund. Targeted transactions include mezzanine loans, equity investments, and DIP financing.
- Advisory. Various advisory and consulting services for the workout of all types of troubled credits and real estate assets.
For Further Information Contact:
Cathy Clarke
CNC Associates
508-833-8533
cathy@cncassocs.com