CMBS Veteran Launches Advisory Firm

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Frederick L. Fellows has established an investment management company focused on commercial real estate debt securities. Fellows, 43, founded Basalt Capital LLC (Basalt) in Chicago IL to build upon the success of its predecessor, Cargan Investment Management LLC which he formed in 1999. Basalt, an institutional advisory firm, currently manages commercial mortgage backed security (CMBS) investments for a related investment partnership. Basalt has launched a $500 million high yield CMBS oriented investment fund and expects to have their first closing within the next several months.

our platform is has unique CMBS expertise and is supported by extensive research and proprietary analytics.

Fellows said, "a carefully selected unlevered CMBS investment can yield better returns than many leveraged equity investments," and he added that "providing access to homogeneous assets over an extended period of time is greatly appreciated."

Chicago-based Basalt operates a satellite office in Lake Forest, IL and has a Florida office in its near-term plans. Fellows stated, "our platform is has unique CMBS expertise and is supported by extensive research and proprietary analytics."

Fellows has twenty years of experience in commercial real estate and recently resigned as head of structured finance, overseeing CMBS and ABS trading at Southwest Securities Inc.

Fellows' CMBS background started at Nomura Securities International in 1993 with his commercial real estate career starting several years earlier with CB Richard Ellis. At Nomura, Fellows initially worked for Ethan Penner directing new issuance of CMBS in excess of $20 billion and later was the head of CMBS trading.

Fellows joined Southwest Securities Inc in 2001 and built an extremely profitable high yield CMBS and ABS trading operation.

The story behind the Basalt name is based on rock solid focus.

Basalt Capital's name was inspired by a quaint mountain community located near Aspen Colorado at the confluence of two Gold medal trout streams, the Fryingpan and the Roaring Fork Rivers.

Basalt is a common volcanic rock rich in magnesium and iron used to fortify concrete. Basalt has also formed on Earth's Moon, Mars, and Venus. The dark areas visible on our moon are plains of flooded basaltic lava.

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Brent Gillett Esq.
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