Q: comment please on ecn news today re blackstone 1.14 bln investment
5i Research Answer:
This news is fairly dated; Asset managers Blackstone Inc. and Carlyle Group Inc. are backing ECN’s expansion plans by acquiring the bulk of the loans made by ECN, which earns a fee for originating and servicing the debt. In August, Blackstone committed $1.14-billion to buying manufactured housing loans from ECN’s Triad Financial Services division. The capital will of course allow ECN to grow faster than before, and allow it to earn fees on a higher overall asset base. It is good news for sure, but since it was first announced months ago we would not expect fireworks. It has gotten more media attention recently, however.