Greenwich Time – A Greenwich-based investment management and advisory firm has launched a new hedge fund geared toward lending capital to underserved and niche businesses.
Sands Brothers Asset Management, with offices on Valley Drive in Greenwich, recently unveiled their Genesis Merchant Partners fund, an asset-based lending fund that provides capital despite the tight credit markets, fund officials said.
"It’s very difficult for companies to obtain capital post credit crunch," said Jonathan Feniak, director of marketing and business development and investment for Sands Brothers. "We’re providing loans through Genesis Merchant Partners that are ultimately much cheaper than selling equity at depressed prices."
Asset-based lending is any kind of lending that is secured by an asset. If a loan is not repaid, an asset is taken in exchange.
Genesis, which has 11 employees, will be working with businesses that may otherwise scare more traditional lending sources during the current credit crunch.
For example, according to some published reports, Genesis has been linked to providing financing for the fur trade and animal pelts.
"We look at a broad array of industries that offer up hard assets as collateral and diversification for the portfolio," Feniak said. "We’re filling a need for smaller companies. The niche markets have been the first ones to be excluded by traditional lenders."