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Drawing to a Quick Close

NEW YORK CITY-Avant Capital's niche bridge-loan program aims to capitalize on the small-balance opportunities that are likely to proliferate as assets are sold off.

By Paul Bubny | Updated on March 19, 2010

NEW YORK CITY-Although the often-remarked “rising tide of distress” hasn’t meant a flood of buying opportunities as yet, the assets that do come to market in 2010 and beyond may require fast action, particularly as circumstances shift. Financing may abruptly slip away, or there may be a sudden need for equity to take advantage of an opportunity. It’s with these types of scenarios in mind that investment bank Avant Capital has just launched a small-balance bridge loan program for deals of $1 million to $5 million, with a focus on the Northeast and the state of Texas.

“One of the things that’s different is that we’re funding based on internal valuation rather than third-party valuations,” managing principal Adam Luysterborghs tells GlobeSt.com. “It’s a quick-close program. It’s a niche product.” Avant’s clients since its founding in 2006 have run the gamut from institutional asset managers to individual investors; the quick-close program is meant to address situations that generally would be off the radar screens of major players.

The “ideal” transaction for this type of program, Luysterborghs says, would be “one that was supposed to be a bank loan, the bank pulls out at the last moment, there’s a hard deposit and they need to close in a week. A variation of that is: a client is acquiring a new asset, it’s an opportunistic purchase, they have equity partnerships lined up, those partnerships fall out at the last minute, but they happen to have other assets and need to extract cash immediately to make an equity investment in that project.”

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