Bank owned leasing company seeks appraisal for potential portfolio sale

SITUATION

Major bank leasing client requested Alta asset management team to review and appraise a $2.5 billion portfolio.

SOLUTION

After high level meetings with the bank leasing company, Alta was given access to and reviewed the portfolio records and performed a portfolio appraisal, valuing both the underlying equipment and each lease, based on cash flows. On completion of the portfolio appraisal, some areas (notably rail and aircraft) were found to be severely overvalued, prompting the bank to take reserves against these impaired assets. Eventually portions of the portfolio were sold.