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Madison Capital's Ellen

'When we acquire a loan, we are capturing yields that would be the same yield that we would get if we were originating the paper.'

By Erika Morphy | Updated on May 11, 2008

By now, every investment management firm has retooled its strategy to reflect what is happening in the credit markets. Madison Capital Management is no different – although as an alternative investment management firm specializing in niche distressed real estate, natural resources and special situation financial assets, it has not had to make as big an adjustment as other firms. Credit environment opportunities exist in most of these areas right now, says VP and co-head of the Real Estate group, Brett Ellen.

GlobeSt.com: Tell me about your buying strategy for loans right now.

Ellen: We are seeing a lot of opportunity in loan acquisitions right now — either whole loan or participations of loans being put out to market. These are typically performing loans that banks had originated 12 to 18 months ago with the idea that they would go into a conduit. Now, of course, they find themselves continuing to have to hold them on the balance sheet and so are looking for ways to sell some of that paper and create balance sheet liquidity.

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