Angel Oak Capital Advisors, a leader in credit investment solutions, raised approximately $1 billion in institutional equity capital within the past year, focusing on non-agency residential mortgage credit. The firm is targeted to provide equity capital for about $20 billion in non-agency mortgage origination over the next two to three years.
This ambitious goal of raising $20 billion in capital is part of Angel Oak’s mission to expand their market share in the non-agency mortgage market, and deliver attractive risk-adjusted returns for their institutional investor base.
“Angel Oak’s vertical integration and hands-on approach toward non-agency origination differentiates us in the marketplace,” said Sreeni Prabhu, managing partner and group chief investment officer at Angel Oak Capital. “We continue to receive interest from globally recognized institutional investors, which bodes well for our capital raising efforts going forward.”
Currently, Angel Oak is leading a resurgence in the private label non-agency market and establishing the Angel Oak Mortgage Trust (AOMT) securitization shelf as a market leader. The private non-agency market pertains to mortgages that are not backed by GSE enterprises or the U.S. government.
Earlier this year, Angel Oak Capital issued the first-of-its-kind social bond securitization AOMT 2021-2. These feats will allow Angel Oak to expand their growth in the fourth quarter, and prepare for more interest in commingled funds and customized solutions.
“Our institutional capital raising this year is a testament to our ability to provide structured credit solutions that resonate with yield-seeking institutions including sovereign wealth funds, global pensions, and insurance companies,” added Prabhu.
“We believe owning the junior bonds from AOMT securitizations makes for a compelling investment especially in a zero-bound environment,” said Manish Valecha, chief financial advisor and head of client solutions at Angel Oak Capital. ““Our non-agency investment strategies provide institutional investors with access to the residential mortgage market and importantly, diversification within their private credit portfolios away from corporate credit.”
For more information, please visit www.angeloakcapital.com.
