Daniel Carter began his career in municipal bond sales before transitioning into bond trading. While at the trading desk, nearly 40 years ago, Carter found a niche trading distressed and defaulted municipal bonds. Carter’s experience in the municipal bond industry led to him to establish a lending business (private, secured commercial loans and Debtor-In-Possession loans) and a healthcare operations business (managing retirement communities and skilled nursing facilities).
Municipal Bond Funds
In 1999, Carter started the ITG Tax Free Income & Capital Appreciation Fund, Ltd., focusing on the acquisition and restructuring of distressed or defaulted municipal debt obligations in need of financial assistance and/or operational improvements. ITG’s investment and work-out philosophy centers around cooperation with existing debtors and/or management to achieve a maximum value exit strategy within the confines of the particular credit.
ITG FUND II, LLLP (“FUND II”) began in 2011 with a primary focus on Florida Community Development Districts but has since held or holds significant positions outside of Florida and other industries, including in the healthcare industry. From inception though year end 2019, FUND II has generated returns ranging from 15% to 17.6% annualized IRR to its Ordinary Limited Partners and has now returned about 2x the capital to its original investors.
Private Loans and Debtor-In-Possession
In 1999, Carter formed Naples Lending Group LC (“NLG”) to make Debtor-in-Possession loans and has since the late 1990s has provided credit to numerous, from a variety of industries, debtors under Chapter 11 bankruptcy protection.
Recognizing investor demand for high yielding secured financings, Carter sought to establish a fund into which outsiders could invest money. ITG TAXABLE FUND (“Taxable Fund”) was formed in 2013 with a primary focus on DIP lending and land secured financing to borrowers who can’t or don’t want to borrow from regular commercial lenders. Since its inception in 2013, Taxable Fund has returned up to IRR in the low-to-mid teens annually to its Ordinary Limited Partners.
One Debtor-In-Possession to which NLG issued credit was Buena Vida Estates Inc. (“Buena Vida”), a continuing care retirement community in Melbourne, FL. After multiple failed restructurings in and out of bankruptcy and on the verge of liquidation, Carter proposed to the bankruptcy court that he purchase all of its outstanding debt and begin managing the operations of Buena Vida.
At that time, Buena Vida’s occupancy was below 70% and annual net income was deep in the red. Through management by ITG Management LLC (“ITG”), Buena Vida was able to stabilize occupancy at 95%, which enabled Buena Vida to reposition and expand in 2008. With a waiting list of 50+, ITG is managing another expansion to include 24 cottages and a clubhouse.
Personal Life and Professional History
After his early years as a bond salesman and then a bond trader, Carter moved to Naples, FL to help open the firm’s new office. As a lifetime entrepreneur, Carter soon went into business on his own, first through a series of joint ventures, and then his own broker/dealer.
In 1991, Carter began International Trading Group I, Inc., a licensed NASD broker/dealer, specializing in defaulted and distressed municipal bond obligations. While an active broker/dealer, International Trading Group I, Inc. was principal in the restructuring, repositioning, and workout of over $500 million in municipal debt obligations. Throughout his years as a trader, Carter held Series 7, Series 24, Series 53, and Series 63 securities licenses. He has also led the formation of two previous investment funds, ITG Investor Group, Inc. and Gordon Fixed Income Investments, Inc., of which he also participated as a principal investor.
Carter holds a Bachelor of Science in Business Administration from William & Mary College and Master’s Degrees in Finance and Entrepreneurial Studies from Indiana University.
Dan is happily married to his wife of over 35 years, and they have two sons together. Dan and his wife spend their time in Southwest Florida, Space Coast of Florida and Southwestern Colorado. Dan credits his success to the continued love and support of his wife.