Citi
Asset Management
Recap has worked on diverse assignments for Citi, including:
Asset Management Services
Recap provides asset management services to Citi on a portfolio of selected properties for which it holds the loans. The portfolio currently consists of 35 assets in 17 states and includes performing, non-performing, and watch-list properties; the agreement provides Citi with the flexibility to add or subtract assets in response to its business imperatives. We conduct due diligence on the physical, operational, and financial status of each property to provide a baseline assessment of asset health. We regularly conduct site visits, analyze financial and operating data, and collaborate with borrowers, property managers, and the client to design and execute stabilization strategies where required. On a monthly basis, we produce investment reports and present findings and recommendations to client executives for the portfolio as a whole. The relationship provides Citi with additional property operational support, a broader view of portfolio health, and uniform reporting for senior management purposes.
Acquisition of a Tax-Exempt Lender and its Bond Portfolio
Citi wished to acquire a $1.5 billion portfolio of tax-exempt bonds from an entity controlled by KKR. During the acquisition, the seller proposed that Citi also acquire the debt-origination platform, the former Newman and Associates. This represented an opportunity to increase both capacity and geographic reach, but involved challenges in pricing and negotiation. Citi engaged Recap as a special advisor in its bid process. We evaluated the portfolio and arrived at a valuation that supported a strong buy recommendation for both the origination platform and portfolio. Of the four consultants involved in the due diligence, only Recap expressed a strong opinion. Citi purchased the platform and portfolio at a favorable price. Since then, they have increased loan activity, experienced strong returns, and solidified their status as a premier multifamily bond originator.