Founded in 2008, Bluestone Capital Management specialises in acquiring and managing portfolios of loans, particularly under-performing or non-performing loans to customers.
Portfolio sales can be particularly attractive to vendors looking to cap their exposure to further loss and either release capital, or reduce the risk that further capital will be needed to support a portfolio. Other interested parties include lenders exiting a jurisdiction or asset class, mortgagee’s in possession, or the administrators of failed ventures.
Another area of interest for BCM is mortgage and asset backed securities. Many of these securities are now classified as illiquid and impaired which potentially impedes owners from holding them efficiently.
BCM understands the complex credit and liquidity issues within these securities and how to price and manage them accordingly. We are able to acquire or manage asset-backed securities on behalf of their owners to optimise returns.
When BCM undertakes asset purchases we usually team up with a capital partner to fund the acquisition, while co-investing in each transaction to ensure our interests are aligned. Then BAM takes on the day to day management of the portfolios, using best practice to optimise performance.
In particular Bluestone’s expertise in managing tougher books means financial performance is optimised. This is reflected in the price Bluestone achieves when bidding for loan books. Total recovery on a sale to BCM, even at a discount, may well be higher than a self managed wind-down.
BCM can acquire operating businesses as well as asset pools, particularly where there is a team in place currently managing the assets.