San Diego Business Journal

Directed Capital Closes Sixth Fund

Friday, November 30, 2012

Directed Capital, a national distressed asset workout business with an office in San Diego, said it closed a sixth investment fund with $50 million in equity and is pairing it with $84 million in credit financing it obtained from Goldman Sachs Bank USA to finance acquisitions over the next three years.

Part of that package from the bank, a $34 million term loan, will be used to refinance assets that Directed Capital currently owns in a prior fund.

Since its founding in 2001, Directed Capital has closed six funds raising more than $140 million in equity, and acquired more than $650 million in assets, the company said.

Directed said it operates in an alternative investment space and has provided its investors with superior returns that aren’t correlated with the market. Unlike banks and other lenders that typically sell or foreclose on loans when borrowers hit a rough patch, Directed buys the distressed loans and works with borrowers to help them get back on track.

The firm has 20 professionals working both in San Diego and St. Petersburg, Fla.

— SDBJ Staff Report