Active Risk Management

  • CFG actively supports Investors who participate in our private placements throughout the life of their investment in a given offering.
  • While this ongoing support does not guarantee a successful investment, since 1995 we had many experiences where this support was critical to the investments ultimate success…so we are committed to it
  • During the life of each investment CFG provides: 
    • Evaluation and supervision of issuer operating performance…including the imposition of business consulting where necessary,
    • Interest and principal payment monitoring and processing,
    • Issuer reporting distribution and online archival, 
    • Legal intervention on behalf of investors, when necessary. 

Case Study – Food Processing Company

  • Investment –  $12.50mm 15% Participating Preferred Equity
  • Challenge – Company not achieving the necessary results, $150,000 monthly operating loss
  • Action & results – CFG conducted a 60 day intensive operational evaluation and then created and managed a turn-around plan including data analysis, report generation, management mentoring, and ongoing operational supervision.  Operating volumes have increased 250% and sustainable profitability, with positive operating cash flow has been achieved.

Case Study – Scrap Metal Shredding

  • Investment –  $2.65mm 14% Senior Secured Notes
  • Challenge – Misrepresentation of collateral value, default on interest payments, 
  • Action & results – CFG monitored a borrowing base, began withholding sales proceeds, foreclosed, conducted mediation.  CFG investors received a 98.72% return of principal; other lenders sustained a 50%+ loss of principal.