Liquidity Solutions

What Liquidity Solutions does

Liquidity Solutions, Inc. (LSI) is a privately held specialty financial firm founded in 1996 and headquartered in Hackensack, New Jersey. The company purchases claims and interests in distressed situations — bankruptcies, liquidations, receiverships, and insolvent insurance estates — paying cash for paper assets that are otherwise illiquid. It buys a wide range of claim types, including bank debt, trade claims, administrative claims, priority claims, equity interests, secured claims, lease rejections, contract rejections, and disputed claims, and reports involvement in over 1,000 separate cases across the United States, Canada, England, and Bermuda.

The firm operates through a direct, relationship-based go-to-market motion: sellers reach out via phone or a web form, claims are reviewed and underwritten, and most transactions close in under one week. LSI serves two counterparties — seller clients (ranging from Fortune 500 corporations to small companies and individuals) who want immediate cash for receivables, and investor clients (large funds, banking institutions, and individual investors) — and segments its offering into Creditor Services, Trustee and Attorney Services, and Insurance Services. Revenue is generated from the spread between the discounted price LSI pays for a claim and its eventual recovery value; pricing is negotiated per claim with no public tiers.

Underlying technology is minimal: the public-facing stack is a WordPress site with simple contact forms, and the core competency is manual due diligence and counterparty underwriting rather than platform automation. LSI is privately held, has no disclosed institutional backing, operates with 11–50 employees, and shows no documented acquisitions, partnerships, funding rounds, or recent leadership changes in the available materials.

Name

Liquidity Solutions

Legal name

Liquidity Solutions, Inc.

Website

https://liquiditysolutions.com

Company type

Private

Founded year

1996

Operating status

Operating

Headcount range

11–50 employees

Short description

Liquidity Solutions, Inc. is a privately held specialty financial firm, founded in 1996 and based in Hackensack, New Jersey, that purchases claims and interests in bankruptcies, liquidations, and insolvent estates, serving Fortune 500 sellers to individuals on the sell side and large funds to individual investors on the buy side across the U.S., Canada, England, and Bermuda.

Ownership category

akta.pro rank

Product category

Distressed Claims Purchasing

NAICS

Other Nondepository Credit Intermediation (52229)

SIC

Short-Term Business Credit Institutions (6153)

akta.pro primary industry

Debt Buying / Portfolio Acquisition & Recovery (Debt Purchasers) (BPAAAEAG)

akta.pro secondary industry

Distressed Debt Funds (FSANAKAA)

Keywords

• Distressed claims purchasing
• Bankruptcy claims trading
• Insolvency estate funding
• Illiquid debt acquisition
• Specialty financial services

Headquarters

HQ city

Hackensack

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D

Revenue model

1. Claims Purchasing: LSI generates revenue by purchasing claims and interests in distressed situations (bankruptcies, liquidations, insolvent estates) at a discount and converting them to cash. The company purchases various types of claims including bank debt, trade claims, administrative claims, priority claims, equity interests, secured claims, lease rejections, contract rejections, and disputed claims. Revenue is generated through the spread between purchase price and eventual recovery value.

Pricing tiers

Go-to-market motion1 record

Distribution channels1 record

Marketing channels2 records

Core offering

Liquidity Solutions purchases claims and interests in distressed situations—including bankruptcies, liquidations, and insolvent (including insurance) estates—at a discount, providing immediate cash for otherwise illiquid paper assets. The firm serves seller clients ranging from Fortune 500 corporations to small companies and individuals, and investor clients ranging from large funds and banking institutions to individual investors. Most transactions are completed in less than one week following assignment review and due diligence.

Product overview

Liquidity Solutions, Inc. (LSI) operates as a single integrated financial services platform focused on purchasing distressed claims and providing liquidity for illiquid paper assets. The company's core offering is its Claim Purchasing service, supported by three specialized service divisions: Trustee and Attorney Services (which includes funding cases and funding plans), Insurance Services, and Creditor Services. LSI purchases various types of claims including Bank Debt, Trade Claims, Administrative Claims, Priority Claims, Equity Interests, Secured Claims, Lease Rejections, Contract Rejections, and Disputed Claims, primarily serving clients across North America, England, and Bermuda.

Differentiator

Problem solved

Functional benefit

Products and services

• Claim Purchasing
• Trustee and Attorney Services
• Insurance Services
• Creditor Services

Quantifiable outcome

• Most transactions are completed in less than one week

Named customers17 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Scale indicators2 records

Recent moves4 records

Expansion highlights4 records

Broad incumbents

• Apollo Global Management: Apollo Global Management operates one of the world's largest alternative investment platforms, with significant distressed and special situations funds that acquire claims in bankruptcies and restructurings—overlapping with LSI's claim purchasing thesis at far greater scale.
• Strategic Value Partners: Strategic Value Partners is a global investment firm specializing in distressed debt, special situations, and bankruptcy claims. It actively purchases claims in insolvency estates, directly overlapping with LSI's core claim purchasing activity.
• Oaktree Capital Management: Oaktree Capital Management is one of the largest distressed debt investors globally, deploying capital across defaulted, stressed, and restructured situations. It competes with LSI for distressed paper assets but at a much larger scale and broader scope.
• Cerberus Capital Management: Cerberus Capital Management is a global alternative investment manager with deep involvement in distressed debt and bankruptcy claim acquisition. It addresses the same opportunity set as LSI but operates at multibillion-dollar scale across many asset classes.

Direct peers

• PRA Group: PRA Group is a publicly traded specialty financial services firm that purchases and collects defaulted receivables at a discount. Its core business of acquiring charged-off debt portfolios at a discount and recovering value is directly analogous to LSI's claim purchasing model.
• Encore Capital Group: Encore Capital Group is a leading debt buyer that purchases defaulted consumer receivables at meaningful discounts and recovers value through collections and sale. Its portfolio acquisition model mirrors LSI's claim purchasing approach in distressed estates.
• SquareTwo Financial: SquareTwo Financial (now operating within Enova) purchases charged-off consumer receivables and recovers value, sharing the same core claim-purchasing and recovery-oriented business model as LSI in distressed situations.
• Sherman Financial Group: Sherman Financial Group is a privately held specialty consumer finance company that purchases defaulted and distressed receivables. Its debt-buying business shares the same fundamental thesis as LSI—acquiring illiquid paper assets at a discount to recover value.
• Jefferson Capital Systems: Jefferson Capital Systems purchases defaulted consumer receivables and recovers value through collections and portfolio management. It shares LSI's fundamental approach of acquiring illiquid paper claims at a discount and monetizing recovery streams.
• Asta Funding: Asta Funding is a specialty financial services firm engaged in purchasing, managing, and servicing defaulted consumer receivables. Its portfolio acquisition model is closely aligned with LSI's distressed claim purchasing business.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/lsi_2

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Liquidity Solutions