Special Servicing and Asset Management
Obsidian Finance Group, LLC provides special servicing and asset management services for commercial and residential real estate, non-performing loans and other distressed financial assets. In performing these services, we are typically retained to develop and implement strategies that maximize recovery in complex situations involving litigation, bankruptcies, foreclosures and fraud.
The greatest strength of Obsidian is the diversity and experience of our in-house full time professional team, which consists of individuals with extensive backgrounds in distressed asset investing, real estate, law, finance, valuation, accounting, and tax. Our professional team includes 7 attorneys, 1 MBA, and 1 CPA charterholders. The cross-functional nature of our organization allows us to provide a level of service that far exceeds what is typically observed in the market and uniquely positions us to assess each situation from a detailed and differentiated point of view.
Drawing on our significant experience, Obsidian performs the following:
- Designs and implements a comprehensive asset-by-asset disposition plan in order to maximize recovery;
- Manages the foreclosure and liquidation process of workout assets;
- Works with various financial institutions, including private equity firms, Wall Street investment banks and commercial lenders to develop creative financing solutions;
- Interfaces directly with borrowers, lenders, and legal counsel to resolve the most complex issues; and
- Delivers monthly asset-level status and financial reporting.
Obsidian is best suited to projects that require an atypical approach, a difficult-to-implement structure, or a level of knowledge, diligence and involvement that are not normally demanded of a special servicer. These complicated situations are best served by a special servicer that is not constrained to do things the way they have always been done.
The following are select examples of Obsidian’s experience:
- Obsidian acted as a workout specialist, asset manager and special servicer for the liquidating trust of a major finance leasing company. We structured and negotiated transactions to liquidate complex financial assets and facilitated various legal settlements. Our responsibilities also included managing cash collections and preparing asset, collection, cash flow and forecast reports for third parties.
- Obsidian purchased a 3,000 acre portfolio that primarily consisted of in-process residential developments. We sought to maximize the value of this real property by analyzing the various land parcels and determining the most profitable liquidation strategy. As part of that process, we determined that the optimal recovery for many of the properties would be generated by pushing the property through the entitlement and construction process, rather than settling for a “quick sale.”
- We were hired as an advisor in connection with the bankruptcy of a mortgage lender. We successfully structured and executed a transparent public auction sales process for securitized residual interests.
- Obsidian advised a major Wall Street investment bank on the acquisition of a large and complex portfolio that was being liquidated by a large insurance company. The portfolio consisted of residential and commercial real estate, structured settlements, asset-backed securities, and various annuities.
The experience highlighted above and the cross-functional nature of our professional team demonstrate that we are uniquely positioned to address the complicated issues associated with the special servicing requirements of the most difficult financial situations.