Interview: Michael Taulbee, Partner and Managing Director of Houston Funding

In our most recent interview, we had a great exchange with Michael Taulbee, Partner and Managing Director of Acquisitions and Sales for Houston Funding II, Ltd, a rapidly expanding debt purchaser.

Q. How does someone with a history degree get into the account receivable management industry?

A. Like just about everyone else, I fell into it. I got my first job in the financial sector as a mutual fund investment advisor simply because I got tired of playing volleyball on the beach after college. I eventually got into hedge funds and raising venture capital. A couple of years later, I received a call from a debt buyer asking if I would be willing to come and raise some investor capital for them. While I had never heard of debt buying, the offer was enticing enough to make me listen. The more I listened, the more I was fascinated. That fascination with our industry has continued into my current role today.

Q. You were with Encore Capital Group before going to Houston Funding. What was the transition like for you from Encore to your present position?

A. There were, of course, some of the expected speed bumps; but overall, it was a smooth transition. Going from one of the largest debt buyers to a much smaller organization brought a unique set of challenges and an equal number of opportunities.

Q. What was the appeal of Houston Funding over Encore?

A. I don’t know if there was an appeal of one firm over the other. There were, and continue to be, some of the best and brightest people in the industry over at Encore, and it was difficult to leave. For me, I saw Houston Funding as a wonderful opportunity both personally and professionally. As an added bonus, I got to work with two of the nicest guys in the industry, Bob and Harry Cagle. It was a simple progression and growth of my career.

Q. Tell us about Houston Funding, and how it fits into the larger debt purchasing sector?

A. Houston Funding was founded in 1993 by Bob Cagle. The firm has been steadily buying portfolios directly from issuers and resellers almost continuously since the beginning. I joined the firm in the fall of 2005, being tasked with growing the business and expanding the reach of Houston Funding. Since that time, we have purchased more paper than in the previous five years combined, increased collections to record numbers, and continued steady profitability and growth. As a midsize debt buyer, we offer the flexibility to close deals quickly and easily, while being able to purchase large portfolios that many firms are unable to consider. As a company, we are aggressively working on our efficiency and ability to collect purchased portfolios “Smarter, not Harder.”