Key Star Capital Funds purchase and collect all types of loans, both performing and nonperforming, and also previously charged off loans, for its own portfolio. We have purchased assets from numerous financial institutions, such as Bank of America, Wells Fargo/Wachovia, Key Bank, and US Bank, along with the FDIC and SBA. These assets consist of commercial and consumer loans, secured and unsecured, real estate, raw land, business assets and judgments.
The majority of our loans have been problem loans in various stages of delinquency, typically non/sub-performing. If an institution has already written assets down or charged them off their books, we can provide them with an opportunity to quickly recover dollars to their loan loss reserves, thereby reducing the monthly expense provision for loan losses. Key Star Capital Funds will purchase loans outright for cash and without further obligation from the institution. These funds can then be reinvested into other earning assets. This also eliminates the risk and the costs associated with collection such as legal fees, overhead, insurance, and bankruptcy filings, which prolong the holding period and collection efforts.
Key Star Capital understands that some of these loans originate from borrowers who may continue to be customers of the selling institution. We also understand the importance to these institutions of possibly continuing to maintain a relationship with the customer. Our track record over the years has demonstrated our ability to handle their present and former customers in a highly professional manner.