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Redwood Trust, Oaktree Form JV Around Bridge Loans
Mill Valley-based Redwood Trust, Inc. said Monday it had launched a joint venture with funds managed by Oaktree Capital Management, L.P. to invest in business purpose bridge loans originated by CoreVest American Finance Lender, a division of Redwood. Total equity commitment to the JV, funded 80% by Oaktree and 20% by Redwood, has the potential to finance more than $1 billion of newly-originated bridge loans.
“We continue to see immense opportunity for our bridge lending platform, particularly as other lenders reduce their footprint,” said Dash Robinson, president of Redwood. “The JV allows us to efficiently leverage our own investment capital and serve our customers in expanded ways.”
The JV is designed to purchase the various types of bridge loans that CoreVest originates, including multifamily bridge, build-for-rent and single-asset bridge loans. It may invest opportunistically in loans sourced from third parties. The JV intends to initially finance its portfolio with warehouse facilities that may subsequently be refinanced through securitizations or longer-term credit facilities.
- ◦Financing
