New York (HedgeCo.Net) – Victory Park Capital, a Chicago-based hedge fund, has received a vote of confidence from FRM Capital Advisors in the form of a major investment.  Victory Park Capital plans on expanding their asset-based lending fund in hopes of taking advantage of the favorable market conditions associated with this kind of strategy.

“We are delighted to have the opportunity to partner with such an experienced team,” says FRM Chief Executive Clive Peggram.  “We believe it is a very good time in the credit cycle to pursue an asset-based lending strategy.”

Victory Park Capital Advisors was founded last year and provides asset-backed loans to companies who are in need of financing and can’t always turn to the bank.  Asset based lending is a popular strategy in today’s current market turmoil with the large amount of high rises and other developments being constructed.  High interest rates are usually tacked on the loans, while the building is put up as collateral.    

“We’re very pleased to form a relationship with Victory Park Capital,” says Blaine Tomlinson, FRM’s founder and group chairman.  “As an established and experienced team, they are in an excellent position to capitalize on the attractive financing opportunities available to those who have capital to deploy.”

FRM Capital Advisors is active in the hedge fund seeding industry, seeking out potential opportunity among new funds.  Hedge fund seeding is a great way for new funds to get the capital needed to get off the ground.  Companies who provide the financing will work out some sort of the deal with the fund, perhaps sharing in the profits once the fund starts posting returns.

“We are incredibly excited about our relationship with FRM Capital Advisors and we are gratified that it has concluded that our team and strategy warrant such a significant investment,” said Victory Park Managing Principle Richard Levy.

FRM is a global fund of hedge funds group with over $15 billion of assets under management.

Julie Scuderi
Senior Editor for HedgeCo.Net
Email: julie@hedgeco.net

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New York (HedgeCo.Net) – Jacksonville, Florida-based Advantage Capital Equity Solutions is set to unveil its new asset based lending hedge fund at the end of this month according to an article published in FINalternatives.

The Advantage Capital Equity Fund II will locate nonperforming assets and purchase them at a discounted rate such as real estate taken over by banks following foreclosures. Since the subprime fallout hit states like Florida and California the hardest, the fund will start focusing on those geographical areas initially.

“We see a bottoming of the real estate market six to 18 months out but that doesn’t really affect us,” said Bob Parsons, Senior Vice President. “As far as California and Florida are concerned, I live in Florida and we’re starting to see some stabilization in pricing in Jacksonville. There’s no bottom in sight yet for high-rise condos in south Florida but we don’t lend on high rises.”

ABL funds are gaining popularity, mostly because they tend to thrive in the current market conditions. Florida and California have record numbers of foreclosures and show no signs of slowing down anytime soon. The foreclosures left an array of opportunity for investors to purchase the properties far below face value. Other asset based lending hedge funds focus on providing loans to developers who are in a pinch and cannot get quick financing from a bank. The hedge funds then tack on high interest rates and build up their pool of capital. If the borrower fails to pay back the debt, the property is then seized by the hedge fund.

The hedge fund has a $100 million target. It follows the launch of their private equity fund, Advantage Capital Equity Fund I, which was launched in May. The firm is seeking a seed investor for the p.e. fund, hoping to raise $74 million.

Julie Scuderi
Senior Editor for HedgeCo.Net
Email: julie@hedgeco.net

HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
Be sure to check out our sister sites. For more information, visit www.hedgeconetworks.com

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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."

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