Asset Advisory Case Study

An institutional investor wanted to purchase a portfolio of affordable, multi-family project loans but lacked the capacity for proper underwriting. The investor needed help performing a due diligence review of each potential loan file, including inspection of loan documentation, underwriting criteria and historical financial performance.  These factors were to be used to support its loan purchase negotiations and pricing decision.

SPECIFIC CHALLENGES

The loan portfolio included a broad range of loan amounts, borrowers, property types, locations and underlying financial strengths.  The diversified scope of the portfolio made reliance on statistical criteria an inappropriate method to analyze the information.  Instead, each loan had to be individually evaluated in a short due diligence period.

STRATEGY & SOLUTION

Veloce Partners performed a due diligence review of each file, then prepared a summary of historical and projected operating performance with recommendations regarding the strengths and weaknesses of each loan.  Now, years after the transaction was completed, the loan portfolio continues to  perform successfully and in-line with investor expectations.