Lotus Capital Partners has launched a loan sale and distribution business for investors and lenders alike. Syndication veteran Tim Taylor will run the new platform, which s intended to help lenders rebalance holdings, leverage yield, or simply to de-risk their positions. The new platform will be one of few run by independent shops, according to the company. We sat down with Faisal Ashraf, founder and CEO of Lotus Capital, to find out more about the firm's new business.

GlobeSt.com: What was the impetus for you to launch this loan sale and distribution business?

Faisal Ashraf: Right now we're at an inflection point in commercial finance where, lenders are under increased pressure to manage their loan books. This is due to a confluence of factors that include regulations, credit committee scrutiny and shareholder pushback. With a combined 45 years of lending and distribution experience, Tim Taylor and I have built up a global network of more than 200 sources of capital and have developed a technical expertise that clients find appealing. Together, while at CCRE we closed $4bn in loan sales, and there is an opportunity for us to leverage our track record, expertise and relationships to offer the market something nobody else is as well positioned to offer: an outsourced loan sale and distribution desk capable of placing debt from within a loan capital structure or whole loans.

GlobeSt.com: Why was this a good time for you to launch this business?

Ashraf: It's definitely true that downturns are an excellent time for those of us with the proven ability sell paper, there are many reasons why lenders of all types look to address their portfolios during prosperous times, such as we're currently seeing. For example, we're seeing alternative lenders that want to leverage yield by selling some of their senior loan positions, mid-sized CMBS shops that want to take some risk off the table, and balance sheet lenders looking to place a slug of pari passu or downsize their exposure in certain markets. None of these reasons signify crisis or a collapsing market; they are healthy responses to secular pressures, we're seeing, like regulations, credit committee scrutiny and investor pushback. As former capital markets professionals, we understand that lenders all have different biases with regards to asset classes and loan types, and we see ourselves as an intermediary who knows the different firms and their biases. This is critical is in helping lenders know how they can best optimize their portfolios and then executing on elegant capital market solutions.

GlobeSt.com: What are your goals with this new platform?

Ashraf: This platform is a perfect complement to our mortgage banking business, which we launched last year. We've already closed one of the biggest deals in the history of Florida and have become a top 1% mortgage banking firm in the country with more than a billion dollars in debt origination already closed and more than $700 million in active, contracted assignments. We want to be seen as the capital markets partner that can address the broadest range of sponsor and lender needs through high-touch solutions and execution. Like mortgage banking and advisory, loan sales and distribution is going to be a key driver of Lotus' growth, and over time we'll add new dimensions on top of what we already offer the marketplace. Tim and I feel very passionately about this work. It is a great privilege to be relied upon by clients whose businesses are dependent on our ability to deliver bespoke, sophisticated solutions at the highest level of structured finance.

GlobeSt.com: Why do you think this is an untapped segment of the market?

Ashraf: One reason is the lingering and incorrect perception that loan sales and distribution are only relevant during difficult times or during an acute crises. Until you need to address a secular portfolio issue, it's hard to understand why selling loans or parts of loans would make sense during a market run-up. But there are already plenty of outstanding lenders who 'get it.' Many of these lenders do not have their own in-house capital markets teams and some do. But when stakes are at their highest, even those with excellent in-house teams, frequently want to access the different or deeper relationships and perspective we carry from decades running distribution at top Wall Street firms. Over the past 20 to 25 years, Tim and I have closed deals of every type at every point in the cycle — so it makes perfect sense for us to operate an outsourced loan sales and distribution desk that can sell off portions of capital stacks or whole loans, based on client need. The reality is there are simply not many people in capital markets who are able or willing to take on this type of work. Strong execution requires not only knowledge physical and mental stamina at the extreme.

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