Debt Pool Party!
|CapitalSource hasn't any qualms about the market either—and why should they? Not only is the commercial lender fresh off its acquisition of Fremont Investment & Loan's retail banking operations, which provided the firm with an additional $5.2B in deposits, butcompetition is waning in the lending market as other players drop out or merge. We dropped in the Fifth Avenue office of Gabe Boyar, a director in CapitalSource's real estate finance group, who tells us many companies are trying to reduce their risk exposure by selling off debt, which CapitalSource is snatching up. The firm is acquiring large pools of performing debt, as well as helping clients looking to buy debt. On the lending side, the firm's more conservative, focusing on better-capitalized clients and lower loan-to-cost ratios. So, if you want a building financed, it should have cash flow, yet require some time to turn around: âWe want deals with a story.â Office andindustrial remain sweet spots, but the firm is being cautious aboutretail and hospitality in wake of reduced consumer spending.|
|Despite the increased activity, CapitalSource's execs still have time for extra-curriculars. We said a quick hello to resident structured finance guru and TV star Christopher Harms, who appeared onBloomberg last Friday to talk about how the day affected the fixed-income market. And Gabe was off to the soccer field over the weekend, performing a triple play as coach, referee and divisionhead for his two daughters' league—roles that have taught him a lot of patience. A good thing to be re-learning these days.|