Strategies

Specialty Finance

Castlelake’s Specialty Finance team combines strong industry relationships with data analysis to identify attractive opportunities to invest in a wide variety of specialty finance asset classes, including consumer credit across the risk spectrum, commercial credit opportunities such as small business credit and equipment finance and leasing, and other asset-backed/esoteric asset classes.

  • $3 Billion+ Invested in Consumer Credit Card Receivables
  • 30 Million+ Consumer Data Files
  • 3,500+ Commercial & Industrial Loans Acquired

Leading investor in the global specialty finance arena

Since 2015, Castlelake’s Specialty Finance team has invested over $3 billion in specialty finance opportunities, including acquiring more than 3,500 commercial & industrial loans and financing or acquiring more than 5 million consumer receivable accounts. Driven by a capital constrained opportunity in the consumer and commercial credit market, Castlelake has increased its investment velocity in the specialty finance space in recent years. Areas of investment have included near-prime and sub-prime credit card portfolio acquisition, retail private label credit card/loan portfolio acquisition, consumer non-performing loans/consumer direct lending and small business credit origination.

Combining relationships and data to provide capital to dislocated opportunities in specialty finance asset classes

The Castlelake team has deep expertise in consumer specialty finance and small business commercial finance across the risk spectrum. The demand for credit and the reduction of its availability has created a classic capital-starved situation in which Castlelake’s experience enables it to stand out as a preferred capital provider.

We take a granular approach to underwriting this complex asset class that leverages analytics on more than 30 million credit card accounts and 3,500 commercial & industrial loans. This detailed approach results in selective investment and comprehensive stress testing in order to potentially generate compelling risk-adjusted returns with strong downside protection.

The Castlelake team also employs a relationship-driven approach that has resulted in a differentiated network of sourcing and servicing partners. This positions us to execute on a large pipeline throughout economic cycles.

Sourcing

Direct, long-standing relationships with sellers, servicers and third-party advisors, including regional, super-regional and money center banks.

Underwriting

A combination of both statistical analysis as well as credit-by-credit, asset-by-asset diligence, when appropriate, with a strong emphasis on analyzing charge-off rates, stressed scenarios and structural downside protection, and conducting qualitative assessments of management teams.

Exiting

Asset-by-asset resolution tailored to each individual situation, with a preference for amicable outcomes.

Meet OurSpecialty FinanceTeam

  • Eduardo D'Alessandro
    Co-head of Investment Teams, Europe & Partner
  • Matt Little
    Co-head of Investment Teams, North America & Partner
  • John Lundquist
    Head of Specialty Finance, North America & Partner
  • Alex Curcio
    Managing Director, Specialty Finance
  • Jon Lanners
    Managing Director, Specialty Finance
  • Lucas Jackson
    Director, Specialty Finance
  • David Oman
    Director, Specialty Finance
  • Aadit Prasad
    Director, Specialty Finance
  • Nick Turgeon
    Director, Specialty Finance