A new receivables/specialty finance company associated with hedge-fund Old Hill Partners has just begun ramping up a portfolio of assets, and plans to structure private un-rated securitizations as part of its overall funding strategy.
The Connecticut-based firm, called Patriot Capital Markets, is spearheaded in part by newly hired Chief Investment Office Charles Forbes, a twelve-year veteran of Greenwich Capital Markets and a founding member of the bank's asset-backed finance business. Heading up the commercial real estate component of Patriot's effort is Chief Operating Officer Joseph Callaghan.
Like other players in this growing niche, Patriot is targeting the types of companies that have fallen off of Wall Street's radar screen as a result of tighter credit standards and a changing regulatory environment.
As an affiliate of Old Hill, Patriot has the ability to warehouse assets. Along with other strategies, Patriot will purchase portfolios either to hold to maturity, or finance through various means, such as restructuring, repackaging, selling or securitizing in whole or in pieces.
At Greenwich, Forbes worked with companies such as Arrow Financial (see ASR 10/15/01) which specializes in the purchasing and securitizing of distressed consumer receivables, reaping value through specialized servicing and collections.
Patriot Capital does not initially intend to establish a servicing or collections arm, but, if called for, would enter into a co-investment relationship with a firm specializing in asset servicing.
Both Forbes and Callaghan report to Patriot's Chairman, John Howe, a founding partner of Old Hill.