USA Recovery Group Business Plan Summary

Overview

The financial and real estate markets in the United States of America are facing a period of extraordinary stress.  Real estate is experiencing a severe downturn fueled by oversupply, financial illiquidity and lack of credit, and the near collapse in demand.  In these financially challenging times, the success of any plan to resolve distressed or “toxic” assets, and to prevent performing assets from deteriorating, is dependent upon experience and structure.  Specifically, what is needed is the experience and established structure of those who have a proven track record creating and implementing the processes necessary to effectively and profitably manage sub-performing, non-performing loans, underperforming real estate and other financial assets.  USA Recovery Group, LLC (“USARG”) is a firm with the necessary and requisite expertise which provides the full range of services necessary to value, service and dispose of troubled loans, real estate and other financial assets. 

Recognizing the size and complexity of the asset restructuring opportunity the heads of each member firm have come together as principals to form USARG as a formidable competitor. USARG provides full-scale, integrated and seamless capabilities and capacity in asset valuation, due diligence, underwriting, structured finance, asset marketing (loan and OREO sales), portfolio asset management and loan servicing; default management; legal and asset recovery services including collections, foreclosures and bankruptcies; and other litigation. 

The principals of USA Recovery Group (USARG) have developed an Opportunity Fund (The Fund) to facilitate the formation of an Investment Alliance with a significant private capital base to acquire assets (distressed or non-distressed) on a discounted basis from bank receiverships, financial institutions, the FDIC and from the public private partnership vehicles of the U.S. Treasury Department.

Targeted Opportunities

There are multiple tracks of opportunity from two government program directions that are currently being considered by The Fund.  The list below is intended to demonstrate the available opportunities of which any given investment fund can avail itself.  USARG has positioned itself to take advantage of any or all of these tracks but will focus appropriately to meet the objectives of any Investment Fund Alliance.

Receivership Assets – There are three acquisition tracks:

• Whole Loans and Real Estate- involving the outright purchase of commercial and residential assets; unleveraged and non government participated.
• Structured Transactions/LLC Memberships-involving pools of like kind assets with FDIC participation and “back-end” promotes; offered on a sealed bid basis to pre-qualified investor/asset manager teams.
• Good Bank / Legancy Bank Affiliation - Purchase of Receivership Franchise with investor selected assets prior to receivership execution on a negotiated basis.

Non Receivership Assets –The USARG Opportunity Fund intends to pursue the  combined Treasury/FDIC program involving “legacy loans” from financial institutions to be placed in Public-Private Investment Partnerships with leveraged equity contributions from the UST and private investors.

Deal Structures

The Fund will be in the form of a “club fund” in which the members have similar investment objectives.  The deal structures will be largely defined by the various government programs listed above.  The acquisition pricing/bids will be based on an analysis of the assets’ cash flows and disposition returns and timing of such discounted based on The Fund Members’ risk assessment and targeted returns on equity.  USARG intends to co-invest in the funds on a “relative capital” basis, which should ensure investors that the interests will fully aligned.   Further details can be provided on a confidential basis.