DIRECT LENDING INVESTMENTS, LLC

Case Highlights

• Obtained control over DLI’s operations, assets, and books and records upon appointment as permanent receiver
• Liquidated or restructured 26 portfolios of loans totaling over $750 million
• Coordinated claims and recoveries for over 1,000 global investors

Case Narrative

In April 2019, DSI was appointed as permanent receiver for the estate of Direct Lending Investments, LLC and its affiliated entities (“DLI”) after the Securities and Exchange Commission charged DLI with a multi-year fraud. DLI is a registered investment advisor and fund manager with over $750 million in managed funds from over 1,000 global investors. Through its domestic and foreign funds, DLI invested primarily in various lending platforms focused on real estate, small business, consumer, receivables financing and commodities through a variety of complex structures. At the time of the receivership, DLI had investments across 26 third-party borrowers or portfolios, ranging in size from $1 million to $200 million.

With the assistance of DSI professionals, DSI is managing all receivership operations, financial reporting and asset recovery efforts which are particularly challenging given that the original loan transactions were not well underwritten, documented or maintained. DSI is continuing to evaluate the financial status of the receivership entity and its assets in an ongoing attempt to maximize the recovery of each portfolio, with over $150 million in total recoveries to date.