Asset manager Barings has acquired a minority stake in US real estate lending platform Crebrid and committed an initial $500m (€436m) to help expand the business.
Crebrid, formerly known as Wildcat Lending, specialises in residential transition loans (RTLs), which provide short-term financing for development and renovation.
Barings is making the investment via its $70bn asset-based finance investment strategy, which seeks to “develop selected long-term origination partnerships that provide distinct and durable access to differentiated residential, consumer and commercial asset-backed investment opportunities for its investors”.
Jim Moore, head of asset-based finance at Barings, said: “We are excited to begin this partnership with Crebrid, which builds on our more than three-decade track record of activity within the residential whole loan sector.
“We’re looking forward to working with Tim and the Crebrid team to support their growth strategy and capitalise on the compelling investment opportunity for our investing clients in the attractive and growing RTL sector.”
Tim Jordan, president of Crebrid, said: “Barings’ capital and support will better position us to build from a $1bn deployment target in the first year to our goal of reaching $3-5bn in annual originations by 2030.
“We will do this by expanding into additional markets, further enhancing our technology capabilities and continuously improving our industry-leading, high-touch customer service that makes us a lender of choice in the markets where we operate.”
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