Loan servicing transfer for a multi strategy asset manager

A multi strategy alternative asset manager required an accelerated servicing transfer for a time sensitive portfolio to avoid disruption of borrower payments and cash flow.

Sector: Loan servicing

Location: Classified

A moderately sized multi strategy alternative asset manager with approximately $6.4 billion in AUM had its servicing agreement terminated with limited notice and only two weeks to identify a new servicer and board its loans without interrupting cash flow from the transferring deals. The client engaged Mount Street immediately after learning of the termination and senior management held a cross functional kickoff to set deliverables and timelines.

The client approached Mount Street three weeks before the next payment due date. This required the full onboarding of the client and loan portfolio within that same three week window. The 16 loan portfolio, representing $340 million in AUM and made up of multiple asset types, required a quick and complex reconciliation process that included four non performing loans and two warehouse lines.

Mount Street’s collaborative approach allowed the transfer to be completed in time for billing statements to be issued to borrowers, minimizing any interruption to the client’s cash flow. The team worked seamlessly with the terminating servicer to facilitate a clean transfer that supported all parties involved.