Heritage Global Inc. (HG) operates as an asset services company.
The company is specializing in financial and industrial asset transactions. The company provides a full suite of services, including market making, acquisitions, refurbishment, dispositions, valuations and secured lending. The company focuses on identifying, valuing, acquiring and monetizing underlying tangible assets across more than twenty-five global sectors. The company acts as an advisor, as well as a principal, acquiring or...
Heritage Global Inc. (HG) operates as an asset services company.
The company is specializing in financial and industrial asset transactions. The company provides a full suite of services, including market making, acquisitions, refurbishment, dispositions, valuations and secured lending. The company focuses on identifying, valuing, acquiring and monetizing underlying tangible assets across more than twenty-five global sectors. The company acts as an advisor, as well as a principal, acquiring or brokering turnkey manufacturing facilities, surplus industrial machinery and equipment, industrial inventories, and charged-off receivable portfolios.
The company’s operations are organized into two divisions, Industrial Assets and Financial Assets. Within these two divisions, the company groups its business activities into the following four operating segments to manage performance:
Industrial Assets Division
Auction and Liquidation – Through its subsidiary Heritage Global Partners, Inc. (HGP), the company operates a global full-service auction, appraisal and asset advisory firm, including the acquisition of turnkey manufacturing facilities and used industrial machinery and equipment.
Refurbishment & Resale – Through its subsidiary Heritage ALT LLC (ALT), the company acquires, refurbishes and supplies specialized laboratory equipment.
Financial Assets Division
Brokerage – Through its subsidiary National Loan Exchange, Inc. (NLEX), the company brokers charged-off receivables in the United States and Canada on behalf of lenders including banks, mortgage companies, and auto and alternative lending sources.
Specialty Lending – Through its subsidiary Heritage Global Capital LLC (HGC), the company provides specialty financing solutions to investors in charged-off and nonperforming asset portfolios.
Business Strategy
The company’s business strategy in the Specialty Lending and Auction and Liquidation segments includes the option of partnering with one or more additional purchasers or lenders, pursuant to a partnership, joint venture or limited liability company agreement (collectively, Joint Ventures).
Financial Assets Division
The company’s Financial Assets division provides services to issuers of consumer credit that are looking to monetize nonperforming and charged-off loans — loans that creditors have written off due to failure to pay. Nonperforming and charged-off loans typically originate from banks that issue unsecured consumer credit.
Brokerage Segment
Through NLEX, the company acts as an advisor for sales of charged-off and nonperforming asset portfolios via an electronic auction exchange platform for banks and other debt holders throughout the United States and Canada. The typical credit the company brokers sells at a deep discount to face value, and it typically receives a commission for these services from both buyers and sellers. The company has existing relationships with high quality, top-tier and mid-tier debt buyers. In addition to its banking relationships, NLEX has continued to be opportunistic as new lending facilities, such as FinTech, peer-to-peer and more recently Buy Now Pay Later lenders have expanded the availability of consumer credit. Together with growing volume in this industry, due to large increases in delinquency and charge-off rates, the company anticipates significant growth opportunities in its brokerage segment as these sectors evolve. Given many of the company’s clients' limited resources in this space, it has also implemented post-sale support, further entrenching NLEX with its dedicated clients.
Specialty Lending Segment
Through HGC, the company provides specialty financing solutions to investors in charged-off and nonperforming asset portfolios.
Industrial Assets Division
The company’s Industrial Assets division advises enterprise and financial customers on the sale of industrial assets mostly from surplus and sometimes distressed circumstances while acting as an agent, guarantor or principal in the sale.
Auction and Liquidation
Through HGP, the company offers a global full-service auction, appraisal and asset advisory firm, including the acquisition of turnkey manufacturing facilities and used industrial machinery and equipment. The fees for the company’s services typically range from 15–50%, depending on its role and the transaction. This division predominantly targets sellers of surplus or distressed inside the building assets. The company’s buyers consist of both end-users and dealers.
Refurbishment & Resale
Through ALT, the company has specialized its offering in the biotech and pharma sectors, which have been key verticals over the past decade. ALT focuses on refurbishing and reselling laboratory equipment.
History
The company was founded in 1937. The company was incorporated in the state of Florida in 1983. It was formerly known as MedCross, Inc. and changed its name to I-Link Incorporated in 1997; to Acceris Communications Inc. in 2003; to C2 Global Technologies Inc. in 2005; and then to Counsel RB Capital Inc. in 2011. Further, the company changed its name to Heritage Global Inc. in 2013.