Dalton Investments Launches Distressed Mortgage Strategy


Joint Venture with Beach Front Property Management

LOS ANGELES, Oct. 2 /PRNewswire/ — Dalton Investments, LLC, a SEC- registered investment management firm serving institutional and private clients, today announced that it is offering a new distressed-mortgage strategy that will buy defaulted loans from mortgage servicing companies at significant discounts and restructure them, providing affordable monthly payments for homeowners and a residential mortgage- and real estate-backed investment vehicle for Dalton’s investors.

The new strategy, which is a joint venture with Beach Front Property Management, Inc. of Long Beach, Calif., will be managed by Steven D. Persky, co-founder and chief executive officer of Dalton Investments, and Kyle Kazan, president of Beach Front Property Management (BFPM). BFPM, founded in 1999 by Mr. Kazan and James B. Rosenwald III, co-founder and managing partner of Dalton Investments, currently manages more than 2,000 single family homes and apartment units in California.

“This new strategy will combine Dalton's expertise in distressed debt and Beach Front Property Management's experience in buying and restructuring troubled real estate assets,” said Mr. Persky. “The sub-prime market is just beginning to unwind and we expect defaults and foreclosures to skyrocket over the next six to 12 months.”

Mr. Kazan added: “This strategy will build on our existing management platform and will only invest in mortgages after we have done a thorough analysis of their underlying assets. There will be tremendous opportunities for buying loans at significant discounts and turning them into profitable investments while allowing homeowners to stay in their homes with more affordable monthly payments.”

The strategy will initially focus on buying mortgages in Southern California, Las Vegas and Phoenix — markets where easy credit and investor speculation have led to the current bubble, despite excellent long-term prospects for real estate development.

About Beach Front Property Management, Inc.

Beach Front Property Management, Inc. (BFPM) was founded in 1999 by Kyle Kazan and James B. Rosenwald III to provide quality third-party management to the growing portfolio of their real estate investment company, Beach Front Properties, LLC. Specializing in managing and rehabilitating distressed homes and apartment units in Southern California, BFPM's properties under management have grown from approximately 400 units in 1999 to more than 2,000 today.

About Dalton Investments, LLC

Dalton Investments is a registered investment advisor with the Securities and Exchange Commission. The firm currently has $1.3 billion in assets under management and serves institutional and private clients. In addition to the distressed mortgage strategy, Dalton offers six investment strategies, including Japanese management buyouts, Japan equity long-only, Japan equity long/short, Greater China equity long/short, global small-cap equity long/short and global large-cap equity long/short. In addition, the firm's Dalton Advisors division offers institutional and private clients investment strategies using low-cost, tax-efficient funds to structure customized portfolios in separately managed accounts.

SOURCE Dalton Investments, LLC

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