Oaktree Capital Management has made a non-controlling equity investment in Sabal Financial Group, which was formerly Milestone Asset Resolution Co. Financial terms were not announced. Newport Beach, Calif.-based Sabal specializes in the acquisitions and valuation of real estate loan portfolios.
Sabal Financial Group, L.P., formerly Milestone Asset Resolution Company, LLC, a diversified financial services management firm, today announced plans to expand its business operation following a corporate investment from Oaktree Investment Holdings, L.P., an affiliate of global investment management firm Oaktree Capital Management, L.P., in which the Oaktree affiliate will acquire a non-controlling equity position in the company. Sabal Financial Group specializes in the acquisition and valuation of portfolios of real estate loans, with a concentration on commercial real estate (“CRE”) loans and commercial and residential acquisition, development and construction (“ADC”) loans, and currently manages loan portfolios with a total principal balance of approximately $2 billion. The new investment capital enables Sabal Financial Group to expand its operating platform in response to an increase in asset valuation assignments and the growing market for the sale of performing and non-performing loan portfolios.
“This relationship with Oaktree is an important next step in our growth strategy to extend our presence in the acquisition, valuation and servicing of real estate-based loans nationwide,” said R. Patterson Jackson, Chief Executive Officer of Sabal Financial Group. “This investment makes the Oaktree funds more attractive purchasers of small balance performing and distressed loans while positioning Sabal Financial Group as a dominant firm in this space.”
Milestone Asset Resolution Company, the predecessor entity to Sabal Financial Group, was established in 2009 to provide credit advisory services to banks and private investors and to provide asset management and servicing for principal investors. The entity, to be known going forward as Sabal Financial Group, has been extremely active in the acquisition and valuation of both distressed debt and performing loans. Sabal Financial Group is a leading provider of financial guidance to investment and commercial banks, including capital assessments based on portfolio and allowance for loan and lease loss (“ALLL”) analysis, having performed more than 85 bank valuations over the past 24 months.
“Sabal Financial Group has full capability in all phases of the asset life cycle and is well capitalized to meet growing market opportunities,” added Jackson.
Sabal Financial Group will continue to increase its bank consulting business, an area where it has a commanding market presence in providing a broad spectrum of valuation, underwriting and asset management services. The company plans to substantially grow its assets under management and develop a nationwide lending operation to provide debt capital for commercial real estate and select commercial ADC projects.
Sabal Financial Group is rapidly growing its headquarters located in Newport Beach, CA and its offices on the East Coast as it capitalizes on emergent asset disposition opportunities among banks and investors. The firm recently expanded its headquarters office in Newport Beach to accommodate its growth, and is currently looking to fill 15 new positions.
This investment aligns the Oaktree funds’ activity in the real estate sector with a scalable small balance operating platform backed by extensive knowledge of and experience with the banking sector.
“We are actively pursuing the acquisition of commercial and residential real estate loan portfolios and are pleased to be working with Pat Jackson and his team,” said John Brady, Managing Director at Oaktree. “We have high regard for the unique asset valuation and management expertise at Sabal Financial Group and look forward to capitalizing on their skills and expertise in the marketplace to grow our investment position in the acquisition of loan portfolios.”
About Sabal Financial Group
Sabal Financial Group, L.P. is a nationwide diversified financial services firm specializing in the acquisition, valuation, management and servicing of commercial real estate (CRE) and acquisition, development and construction (ADC) loans and mortgages. Sabal Financial Group provides credit advisory services and loan portfolio management and performance assessments for investment and commercial banks, including capital assessment based upon portfolio and ALLL analysis. Formerly Milestone Asset Resolution Company, Sabal Financial Group is a privately held company that has $2 billion under management and is led by a senior management team with extensive banking and real estate expertise in both the governmental and private business sectors. Sabal Financial Group is headquartered in Newport Beach, CA, with offices in Pasadena, CA, Chicago, Miami, Washington, DC, Greenville, SC, and New York City. www.sabalfin.com
Oaktree is a leading global investment management firm focused on alternative markets, with over $80 billion in assets under management as of March 31, 2011. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in distressed debt, corporate debt (including high yield debt and senior loans), control investing, convertible securities, real estate and listed equities. Oaktree was founded in 1995 by a group of principals who have worked together since the mid-1980s. Headquartered in Los Angeles, the firm has over 600 employees and offices in 13 cities worldwide. www.oaktreecapital.com
Certain of the statements in this press release relating to a member or members of the investor group are “forward-looking statements”, as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding, among other things, its business, financial condition, results of operations, cash flows, strategies and prospects. You can identify forward-looking statements by the fact that these statements do not relate strictly to historical or current matters. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties. Any or all of the forward-looking statements included herein are not guarantees of future performance and may turn out to be inaccurate. There is no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.