CASE STUDY: Overcoming Crisis and Achieving Success, Imperial Fund’s First Closed Securitization During COVID-19 Pandemic

CASE STUDY: Overcoming Crisis and Achieving Success, Imperial Fund’s First Closed Securitization During COVID-19 Pandemic

BACKGROUND:

Imperial Fund is a South Florida based mortgage investment fund that specializes in managing investment portfolios of mortgage loans and real estate debt securities. As the company just started the process of their first securitization, COVID-19 pandemic hit and created a critical situation for the team. Imperial Fund and their partners, A&D Mortgage, reached out to Grozina to develop a clear and effective crisis management and communication plan in the midst of a rapidly evolving crisis.

CHALLENGE:

First and foremost, the pandemic significantly reduced the number of transactions and deals being made. Investment banks are heavily dependent on mergers and acquisitions (M&A) as well as capital markets activity. With companies trying to stay afloat, growth and expansion is not on the agenda, so we prioritized working closely with Imperial Fund’s risk management team. This was critical as the economy was quite volatile and traditional risk models were unable to adequately factor in the unique situations that came with the pandemic. We provided advice and implemented techniques for robust and agile risk management, essential for financial survival. At the same time, we expanded our focus on other, more promising sectors. The pandemic didn’t treat all sectors equally. While some were floundering, others like technology and healthcare showed high growth. We re-strategized our crisis management plan to move away from more traditional, pandemic-hit industries to address more resilient and future-focused sectors.

PROCESS:

As Imperial Fund and A&D Mortgage worked to restructure their debt, renegotiate loan terms and schedules with its lenders, Grozina helped to maintain the cash flow and lessened the risk of default. Our persuasive copywriting and strategic approach contributed to maintaining Imperial Fund and A&D Mortgage’s financial stability during a challenging period of restructuring and debt renegotiation. Not only did we manage to convince Sovcombank, one of Russia’s largest privately-owned banks of the South Florida economy’s resilience, but also helped to secure a line of credit and close a securitization deal of $145.6 million.

RESULTS:

The COVID-19 pandemic sent shock waves through the world economy and triggered the largest global economic crisis in more than a century. Despite the challenging market conditions and the fear and liquidation of funds from banks, we managed to achieve impressive results. 

Our leadership and involvement has been instrumental in this process, as our knowledge and expertise greatly facilitated the successful completion of securing a line of credit. Our insights were vital in identifying opportunities and we played a major role in convincing the potential investors of the viability of the investment bank and in ensuring that Imperial Fund received the necessary funding on favorable terms.

Likewise, our public relations efforts resulted in media coverage in Private Air Luxury Homes and Global Trade magazines.

Private Air Luxury Homes Magazine is distributed six times per year through all major U.S. FBO’s with readers encompassing professional athletes, A-list celebrities, Fortune 500 executives, politicians and entrepreneurs, all of whom fly privately with annual household incomes averaging $5.8 million.

Global Trade is the authority for U.S. companies doing business globally. With print and digital distribution of over 127,000 per issue, Global Trade addresses the needs of America’s CEO’s who are responsible for charting their company’s growth and who have the authority to approve them as their logistics partner.

Our ability to quickly adapt strategies in a rapidly changing environment, resulted in continued success for Imperial Fund, as they were not only able to secure the line of credit they needed, but also expand with the formation of two new companies, ADM Securites and MVjets.

IMPACT:

Despite the obstacles, Imperial Fund is not just surviving but showing a steady growth pattern in an environment that is posing challenges to many. The journey continues, and we are focused on finding further ways to improve and solidify Imperial Fund’s market position and financial health during COVID-19 and beyond.