GFI Group Inc. (NYSE âGFIGâ) announced today the launch of the GFI Distressed Asset Receivable Trading (GFI DARTSM) Platform, the first electronic platform designed to enhance the purchase and sale of tax receivables in the secondary market.
GFI DARTSM allows investors to anonymously list, view and submit bids for pools of tax liens and tax deeds. This breakthrough in technology provides structure to the increasingly liquid secondary market for this popular investment vehicle. We believe sellers of tax receivables will be able to maximize the value of their pools through GFIâs large buyer base, and buyers will gain access to unique investment opportunities.
GFI DARTSM provides investors with the tools to find pools of tax receivables that fit their particular investment criteria. Furthermore, the platform provides dynamic offer prices and price history for each pool, updated by the GFI Tax Receivables Brokerage Desk.
Tom McOsker, head of GFIâs Tax Receivables Brokerage Group, said âAt GFI, technology and people are our core strengths. We are excited to introduce GFI DARTSM as the cutting edge electronic platform to support our successful voice brokered business for tax liens. By combining talented people with intelligent tools, we are dynamically changing this marketplace.â
The issuance of tax receivables is one of the oldest financing models in America. Currently 29 states, the District of Columbia and 2 territories participate in some form of tax auction.
Prior to the launch of GFI DARTSM, there was no centralized platform to provide information to the secondary marketplace for these assets. By compiling information about tax receivables from an otherwise fragmented and geographically diverse network, GFI DARTSM delivers crucial information to investors in this sector that we believe will enable the development of an active and liquid secondary market.
The GFI Tax Receivables Desk applies specific market knowledge to locate bids and offers and aggregates pools of liquidity. The desk provides brokerage services to all forms of tax lien investors; including global financial institutions, hedge funds, private equity firms, regional lien pools, venture capital investors, local and state taxing authorities, corporations and family offices.