Tuesday, September 26th

Diversified Financial Institution

We received a call from the CIO of a large financial institution that had been lending and direct investing in real estate for its own account as well as third parties. At the time asset values had been plummeting, prompting a deluge of defaults of assets on which they had made loans, as well as the failure of business plans for its direct investments. The extent of the losses was not fully known, and the most senior executive in the Real Estate Group was close to retirement.

Our client retained Peters & Associates to meet with all the senior executives in the Real Estate group, assess their challenges and potential needs, and report our findings to the CIO. This prompted the CIO to direct a plan of action that began with the formation and recruitment of a Valuation Group within the Real Estate Group, so as to clarify understanding of what they owned and the status of each investment. As the depth and breadth of their challenges unfolded, Peters & Associates went on to recruit senior executive and managerial leadership to reposition their $25 billion portfolio. Categories of recruitment included loan restructuring, workout, REO asset management, dispositions and eventually new originations.