Optimized a Private Equity Firm’s Bridge Lending Platform Through Outsourced Servicing & Asset Management

A leading private equity firm, specializing in short-term, floating-rate bridge loans, sought to significantly expand its platform. The company’s loans are secured primarily by transitional assets, such as new construction and major rehabilitation, which entail a high degree of risk and require close monitoring and oversight of the portfolio. The private equity firm needed a cost-effective way to scale servicing, asset management, surveillance and construction loan management, to minimize risk as it expanded its lending platform.

The firm engaged SitusAMC to help manage its portfolio. SitusAMC assigned a single point of contact and a support team to the account that eventually grew to a dozen dedicated professionals. Each was assigned to a specific deal and supported by an institutional-grade platform of technical specialists. By understanding the details of each transaction, the borrower’s risk profile and the client’s priorities, SitusAMC asset managers could anticipate reporting needs, identify red flags and proactively address potential issues. 

With SitusAMC providing servicing and asset management, the client team could marshal its resources around origination and new client relationships. This enabled the firm to grow its portfolio from $20 million to $12B in assets under management, and expand from a single loan to 156 different positions.