Underwriters

Given the complexities involved with private securitization, there is nearly always an underwriter involved. All underwriters source new borrower clients, conduct due diligence and structure transactions by working with all the 3rd parties involved. Underwriters then fall into one of two categories:

• Buy-side Underwriter - Typically an institutional investor that underwrites the transaction in a principal capacity with the intent of being the investor

• Sell-side Underwriter - Typically a broker-dealer that underwriters the transaction in an agent capacity with the intent of selling the transaction to investors that it sources

In either scenario, underwriters play a crucial role in ensuring the transaction is well structured by conducting due diligence on the originator, the prospective distinct asset pool and all the associated historical performance data to determine the optimal deal structure that minimizes risk and maximizes return while still being competitive to the originator's alternative sources of funding.