Market Intelligence: The Divestiture Imperative

The current credit cycle is defined by a critical economic reality: the cost of holding non-performing assets has become untenable. For banks and credit unions, regulatory pressure to maintain capital adequacy ratios is immense. For Fintechs and specialty lenders, the high cost of capital makes every non-earning asset a direct threat to profitability. This has created a robust secondary market where a strategic, off-market divestiture is no longer an option, but a core component of sound financial management.

The Asset Taxonomy: Portfolios We Transact Off-Market

Our Off-Market Protocol is not a generic process. It is tailored to the unique characteristics of specific, often complex, asset classes. We specialize in the private divestiture of:

• Non-Performing Loan Portfolios (NPLs): Loans where the borrower has ceased making payments (typically 90+ days).
• Charged-Off Debt Portfolios: Accounts a lender has deemed uncollectible and written off their books.
• Distressed Debt Portfolios: A broader category including NPLs and other credit instruments trading at a steep discount.
• Specialized Portfolios: Including credit card debt portfolios, auto loans, medical debt portfolios, and student loan debt portfolios.

The Off-Market Protocol: A Phase-by-Phase Execution

This is the definitive answer to "how to sell a debt portfolio." It is a disciplined, multi-stage protocol designed to maximize value while mitigating all forms of risk.

1. Phase 1: Mandate Definition & Asset Stratification

   The process begins with a deep dive into the portfolio. We stratify the assets, perform an initial valuation to answer, "how to evaluate debt portfolios before purchasing," and define the precise mandate. This determines the entire strategic path forward.

2. Phase 2: Forensic Due Diligence & Data Hardening

   This is the most critical phase for verifying portfolio authenticity. We conduct a forensic audit of the data, verifying the chain of title, confirming the statute of limitations has not expired, and ensuring all documentation required for a compliant sale is in place. This "data hardening" process is what separates our mandates from the risky "as-is" portfolios found on public marketplaces.

3. Phase 3: Buyer Curation & Confidential Market Engagement

   We do not use public auction sites. We maintain a proprietary database of vetted, institutional capital partners. We run a "silent auction" as part of our off-market advisory, engaging only the buyers whose investment thesis aligns perfectly with your asset class, creating competitive tension without public exposure.

4. Phase 4: Negotiation & Closing Execution

   As your exclusive loan sale advisor, we handle the entire negotiation on your behalf. We manage the Purchase & Sale Agreement (PSA) and work with all parties to ensure a seamless, audit-ready closing, providing certainty of execution for your strategic asset divestiture.

The Compliance Firewall: Navigating Regulatory Risk

In the US market, the sale of debt is governed by a complex web of regulations. A misstep can lead to significant legal and reputational damage. Our protocol is built on a foundation of absolute compliance.