PCG acquires syndications, trusts, CMBS portfolios, CDOs, partnerships and other investments which hold undervalued assets. In some situations we acquire non-performing assets where we believe there is unrealized potential upside. In addition, we acquire performing assets which are more efficiently owned by a company with PCG’s structure and/or asset mix. For example, PCG owns PCG Academic Loan Group, which holds equity interests in securitized trusts, the underlying assets of which are billions of dollars of student loans.
PCG owns significant interests in a variety of syndications. Recent acquisitions include a major equity stake in a CDO securitization with assets originally valued at approximately $450 million. Although the vast majority of PCG’s assets and operations are in the United States, we have acquired foreign assets as well. For example, PCG owns the foreign preferred stock equity positions in portfolios of Collateralized Mortgage Backed Securities that were originally valued at approximately $900 million. As the CMBS market has deteriorated, we have sought out opportunities to acquire assets that we believe are undervalued.