Fla. Firm Preps ABL Hedge Fund

Jul 11 2008 | 2:00am ET

Advantage Capital Equity Solutions, a Jacksonville, Fla.-based asset-based lender, has launched a private equity fund and is prepping a hedge fund for launch at the end of this month. 

Advantage Capital’s p.e. offering, Advantage Capital Equity Fund I, launched in May and invests in “deep equity” loans, because of their real estate collateral and low loan-to-value ratios, according to Bob Parsons, senior vice president. The firm is looking to raise $74 million for the fund, its first private equity vehicle.

The firm’s maiden hedge fund, Advantage Capital Equity Fund II, will target discounted nonperforming assets: loans or properties purchased from small and regional banks and sold for less than face value. Parsons said the hedge fund has a $100 million target. Both funds will initially focus on residential real estate in California and Florida.

“We see a bottoming of the real estate market six to 18 months out but that doesn’t really affect us,” said Parsons. “As far as California and Florida are concerned, I live in Florida and we’re starting to see some stabilization in pricing in Jacksonville. There’s no bottom in sight yet for high-rise condos in south Florida but we don’t lend on high rises.”

Parsons is currently canvassing the market for seed investors for the p.e. fund and is optimistic about investors’ appetites for ABL strategies.

“There is appetite from London-based investors for PIPES and I think in time there will be good appetite for asset-based lending strategies,” he said.

Advantage Capital was founded in 2006 by Lane Bacon and Randy Miller.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Controlling With Confidence: A ‘How-To’ For Hedge Fund Managers

Dec 22 2014 | 11:52am ET

Hedge funds are increasingly turning to third party services to help with operations...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.