2.18.2008 / Michael Flock
Flock Advisors Brings Capital To Middle Market Debt Buyers

Despite the current economic climate, and the perception that debt purchasing capital is hard to come by, Flock Advisors can help middle market debt buyers finance the purchase of debt portfolios. There are four keys to success:

1. a proven and successful history of debt buying,
2. a proven management team with debt purchasing expertise,
3. strong and stable financials, and
4. an established pipeline of deals and relationships.

Lenders like to see past results with similar paper that is going to be financed.  This assures them that the company is not starting up for the first time.  It also shows that the management team has the expertise and knowledge in the market place to perform well going forward.  Having solid financials enables companies to leverage their assets and equity and is evidence of sound financial management.  Lastly, lenders like to know in advance something about the pipeline of deals and relationships to be sure that their capital won’t sit idle and will be deployed for the right kind of debt portfolios.

There is one other key to success, and that is having a strong financial advisor, an intermediary, who not only has a network of financing relationships, but also the financial savvy and expertise to organize and present the information to the lenders to execute a transaction successfully and on the best terms for the borrower. Flock Advisors meets these standards. In fact, we recently closed a mezzanine facility for a middle market debt buyer, First Financial Asset Management with Genesis Financial Services Fund.