Hildene Capital Management LLC, a Stamford, Conn.-based, credit-focused asset manager, said Thursday it has entered into a strategic relationship with CrossCountry Mortgage (CCM) and CrossCountry Capital LLC (CCC). Under terms of a multiyear agreement, Hildene will gain exclusive access to certain non-qualified mortgage (Non-QM) originations from the CCM platform, while CCC representatives will commit to invest in an account managed by Hildene.
Terms of the transaction were not disclosed.
Founded in 2003 by CEO Ronald Leonhard Jr., CCM is a U.S. residential mortgage originator that closed over $50 billion in transactions in 2021. It features a diversified product suite, a retail channel infrastructure, and over 8,000 employees across more than 700 retail locations in all 50 states.
The relationship between Hildene and CrossCountry provides Hildene direct access to scalable, high-credit-quality Non-QM loans, and the opportunity to work together to seek to securitize Non-QM loans on a programmatic basis, Hildene said.
“CrossCountry Mortgage has cemented its position as a leading U.S. mortgage originator with an exceptional team of loan experts, national retail footprint, and impressive track record of purchase loan origination,” said Brett Jefferson, founder and co-chief investment officer for Hildene. “We are excited to partner with the company at a time of significant growth and increased market dislocation, which will allow Hildene the ability to generate sound credit investments at historically high interest rates.”
CCM's Leonhardt said his company is pleased to partner with Hildene, “which will allow us to grow our Non-QM originations and further capitalize on the current market environment. We pride ourselves in the trusted brand that we have built over the last two decades and look forward to continuing to support homebuyers and homeowners with exceptional service, products, insights, and transparency.”
Founded in 2008, Hildene Capital Management, LLC is a diversified institutional asset manager specializing in asset-based and credit opportunities. It manages over $12 billion for a broad range of clients across its flagship private funds, tailored managed accounts, and securitized asset structures.
CrossCountry Capital is an asset management and services firm focused on the residential housing sector. CCC said it sources mortgage-related investments throughout the broader residential housing ecosystem, co-invests in assets it sources, and provides securitization and loan management support to its strategic partners.
Steven Ujvary, managing partner at CCC, said the partnership with Hildene “is a testament to the high conviction we have in the Non-QM investment strategy. We look forward to working with Brett, Dushyant, and the Hildene team to source and securitize attractive residential mortgage investments together in the years ahead.”
