Edgefield purchases and manages pools of charge-offs from banks and investors that obligors are unwilling to resolve. (The obligations include deficiencies following foreclosure, money judgments on business loans, unsecured loans, etc.)

Edgefield bears all recovery costs and splits net recoveries with Counter-party, who in turn receives the benefit of Edgefield’s unique workout platform and strong deficiency recovery track record without placing any money at risk

1. Edgefield’s principals led the acquisition and management of 64 non-performing loan portfolios totaling over 10,000 assets under which more than $6 billion in UPB was owed.

2. From the first four non-performing loan portfolios acquired in 2010, Edgefield’s principals oversaw recovery on several hundred million of deficiency balances after foreclosing thousands of commercial real estate loans nationwide

3. $105 million of proceeds were collected, with expenses of approximately $30 million

4. Using the split net recovery on collections structure, the counterparties on the four portfolios described above would have received $37.5 million in deficiency recoveries over a five year period, with all expenses incurred to obtain those collections borne by Edgefield

5. These results demonstrated the value that a net recovery split tail could provide to contributors of charged-off obligations and gave rise to Edgefield’s charge-off program

6. Edgefield continues to average a 3.47x multiple to costs on fully resolved assets, in line with the hypothetical cash flows described below, but within an 18-36 month period