BlackRock announced in May that it would purchase $15 billion in mortgage assets from UBS, which it will manage in a new distressed assets fund. At the beginning of May, New York-based fund WL Ross & Co closed on its purchase of H&R Block’s Option One mortgage servicing unit for $1.3 billion to aid its investments in distressed mortgages. But the risks go beyond just analysing underlying loans, say lawyers.
Structuring investment vehicles that can suitably take advantage of the cheap assets is a challenge, say lawyers, and one that is bringing the hedge fund and private equity structure yet closer together.
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