Angel Oak Capital Advisors LLC
has raised $291 million in capital commitments for its first private credit fund. Having exceeded the initial fundraising goal of $250 million, the Angel Oak Real Estate Investment Fund I LP is now closed to new investors. The Fund, which invests primarily in non-qualified mortgages (Non-QM), provides investors access to the growing opportunity in non-bank lending to creditworthy borrowers who have been unable to obtain residential mortgages since the credit crisis.
Angel Oak is well-positioned in the private residential mortgage market given the firm’s expertise in non-agency mortgage credit and its vertical integration with its affiliated mortgage companies. The firm manages more than $3.5 billion in residential mortgage credit (loans and securities), and has securitized $850 million in Non-QM loans since 2015. Additionally, its affiliated mortgage companies originated $1 billion-plus in Non-QM loans in 2017.
“More and more, we’ve seen institutional investors recognize the growth potential for non-bank lending,” said Sreeni Prabhu, Co-CEO and Chief Investment Officer of Angel Oak. “Our success in raising capital for Angel Oak Real Estate Investment Fund I demonstrates strong investor interest in the Fund’s differentiated strategy to provide attractive, risk-adjusted returns backed by residential real estate. We believe this opportunity, when paired with our expertise in non-agency mortgage credit, makes this an attractive investment.”