HAWTHORNE, NY – Cavalry Investments LLC, which acquires and then collects on distressed consumer debt portfolios, reported $121 million in gross collections proceeds for 2003, a 67 percent increase over 2002.
Over the last two years, Cavalry has tripled the value of its receivables portfolio, to $9.7 billion in 2003, up from $3 billion in 2001. In 2003, Cavalry’s portfolio acquisitions totaled $1.1 billion in aggregate principal balances.
“We continue to manage our growth carefully. Although there still is a significant inventory of distressed loan portfolios available, Cavalry’s strategy is to pursue only those deals that make sense for us from a price and margin perspective,” said Andrew Zaro, Cavalry chief executive officer. “At the same time, we place a strong emphasis on our collections expertise and manage the collections on our accounts effectively.”
In November 2003, Cavalry announced that Bear Stearns Merchant Banking, the private equity affiliate of Bear Stearns & Co., Inc., had acquired a significant minority equity stake in the debt-buying firm. Forging the partnership with Bear Stearns last year was a major milestone for Cavalry, Zaro said.
“It has been outstanding to work with the team at Bear Stearns, which shares our objectives for growing the business and is assisting us to achieve them,” he said.
Cavalry purchases non-performing consumer loan portfolios from major banks, credit card and consumer finance companies, as well as from various industries including automotive, telecom, utilities and healthcare. The firm now has more than 540 employees in four offices across the country servicing 3.5 million accounts.
In addition to its headquarters in Hawthorne, New York, the firm has operations centers in Phoenix, Tulsa and St. Paul. Cavalry is recruiting actively to expand in Tulsa and expects roughly to double its 175 employees there over the next two years, Zaro said.
About Cavalry Investments LLC
With a $9.7 billion portfolio of receivables, Cavalry Investments is one of the nation’s largest acquirers of non-performing consumer loans. The firm ranks in the top ten of the country’s largest debt buyers, according to Thomson Financial. Cavalry’s client roster includes some of the nation’s largest banks and consumer finance companies, as well as automotive companies, retailers, utilities, telecom and healthcare companies. The firm offers significant expertise, proven collection strategies and a proprietary credit scoring system that pinpoints “recoverable” loans, as well as a national legal network. Cavalry has offices in Hawthorne, New York, Phoenix, Arizona, Tulsa, Okla., and St. Paul, Minn.
