Elliott Associates, a hedge fund based in New York, has bought the assets of Edeus to create Exact, a mortgage asset servicing company.
The hedge fund specialise in buying up distressed debt at a discount, including sovereign debt.
In a Bloomberg Markets feature earlier this year, Elliott Associates founder Paul Singer was profiled, and it was revealed that during his career he had sued the governments of several nations: Bloomberg reported that he sued the Peruvian government after buying up much of the debt from two of its national banks. It was also reported that the group seized bonds from the Argentine government, and chased Congolese assets in courts across the world.
The hedge fund founder Singer was one of the few that actually predicted the sub prime mortgage crash: Bloomberg reported that he hedged against mortgage related securities at the end of 2007 and made $5bn.
Singer has given the Bush administration over $100,000, giving him the prestigious ‘Bush pioneer’ title. The group also came to fame last year in the US when Singer became the main benefactor of the Rudy Giuliani campaign.
Exact, the new mortgage management firm backed by Elliott Associates, will be headed up by former Edeus managing director Alan Cleary. The business will focus on providing services to companies that either hold mortgages on their balance sheet or are purchasing mortgage assets on the secondary market
Exact managing director Alan Cleary says: “With the backing of Elliott Associates we can deliver a business strategy that will revolutionise the mortgage services market in a similar way that we revolutionised the mortgage originations market.”