Investment firm Atlas Merchant Capital LLC has partnered with wholesale lender A&D Mortgage, LLC, and Imperial Fund Asset Management, announcing a joint venture partnership (JV) to support the expansion of A&D’s $7 billion mortgage securitization platform.
The JV, which will draw from a combination of internal and third-party capital, will purchase mortgage loans originated and serviced by A&D and other lenders with the goal of securitizing them, while investing across a range of securities in the sponsored transactions, company officials said in a press release.
“Atlas Merchant Capital has sought ways to capitalize on the dislocation in the mortgage market caused by the rapid rise of interest rates throughout the last few years and we are thrilled to be partnering with A&D, a best-in-class lender, to execute on this opportunity,” said Bob Diamond, co-founder and chief executive officer at Atlas Merchant Capital. “The timing of this partnership could not be better as the tone in the mortgage market has been improving, which would provide a large tailwind for this asset class.”
A&D has originated over $10 billion in loan volume since 2020, with a servicing portfolio exceeding $8 billion.
“Atlas Merchant Capital is an ideal partner to help us take our business to the next level,” said Max Slyusarchuk, founder and chief executive officer at A&D Mortgage. “Over the past two decades, we’ve expanded our operation to become the top non-agency mortgage lender nationwide. Our JV partnership with Atlas will accelerate A&D’s growth and our mission of helping more Americans achieve their dream of homeownership.”
The JV launched a new securitized products investment fund August 26, also closing its first sponsored residential mortgage-backed securities deal with $370 million of mortgage collateral sourced from A&D. The deal was rated by S&P Global and Kroll Bond Rating Agency.
“This marks our 21st transaction, but the most recent deal is especially significant for our team because it is the first one completed with our partners at Atlas Merchant Capital," said Victor Kuznetsov, co-founder and managing director of Imperial. "Now, more investors will gain access to top-tier fixed income products backed by the strongest foundation — U.S. residential mortgages."
Atlas Merchant Capital will use its expertise in the financial services investment sector to manage the JV's mortgage investment strategy.
“Opportunities for private credit in the residential mortgage sector have continued to grow as commercial banks have increasingly divested these loans from their balance sheets," said David Schamis, co-founder and chief investment officer at Atlas Merchant Capital. "A&D is the ideal partner for us to align with to take advantage of the tremendous growth and opportunities that lie ahead."
