Icon Capital Sarl
- Capellen Luxembourg
Founded by Dirk Coetzer and Gregory Upton in 2008, Icon Capital Sarl is headquartered in Luxembourg City. The firm was established to benefit from legislation enacted in 2004 that permitted the practice of securitization. Icon Capital Sarl manages securitization funds as well as other investments. Securitization is the practice of pooling certain assets like accounts receivable, mortgages, and loans, and selling them in the form of a security to raise capital. It is a solid strategy for raising capital while permitting investors to share in a generally lucrative loan market. The practice began in the United States in the 1970s, when government agencies pooled home mortgages into securities and sold them. As borrowers made their payments, the agencies transmitted those payments to the holders of the securities. To securitize debt, a firm - the originator - sells income-producing assets to an issuer, which issues securities to finance the purchase. The securities are rated based on the quality of the underlying debt. Those investors who buy the riskiest securities receive the greatest return, but are also the most exposed to borrower default. In most cases, the originator continues to service the assets, collecting payments and handling any escrow issues. It remits the payments to the issuer, less a service fee, and the issuer in turn makes payments to the investors who purchased the securities.