Atlas Merchant Capital Teams Up with A&D Mortgage
In an exciting development set to transform the mortgage investment landscape, Atlas Merchant Capital LLC has joined forces with A&D Mortgage, LLC. This partnership is a major advancement for A&D Mortgage, a leading nationwide wholesale lender, and aims to enhance their robust $7 billion mortgage securitization platform.
A Look at the Joint Venture
This collaboration highlights the commitment of both companies to utilize a combination of internal and external capital. The main focus is to acquire mortgage loans that A&D originates and services, along with those from other lenders. By concentrating on securitization, the partnership intends to broaden investment opportunities across various securities connected to these loans.
Why This Partnership Matters
Bob Diamond, co-founder and CEO of Atlas Merchant Capital, emphasizes that this partnership comes at a pivotal moment. The recent rise in interest rates has disrupted the mortgage market, presenting a unique chance for profit and innovation. Diamond stresses that the positive trends developing in the mortgage sector create a favorable environment for this strategic alliance.
A&D Mortgage: A Leading Force in Lending
A&D Mortgage distinguishes itself as a vertically integrated lender that excels in servicing the prime, non-Agency mortgage market. Since 2020, the company has funded over $10 billion in mortgage loans, maintaining a servicing portfolio that exceeds $8 billion. Their success is largely driven by a national wholesale network, showcasing their ability to connect with a wide range of clients.
Looking Ahead
Max Slyusarchuk, founder and CEO of A&D Mortgage, passionately believes that Atlas Merchant Capital is the perfect partner to elevate their business. Over the last twenty years, A&D has evolved into a top player in the non-agency mortgage space. This collaboration with Atlas is seen as crucial for accelerating A&D's growth and making homeownership more attainable for Americans.
Recent Developments in the Joint Venture
The joint venture recently launched a new investment fund for securitized products and celebrated a milestone with its first sponsored residential mortgage-backed securities (RMBS) deal. This transaction, which encompassed $370 million in mortgage collateral, marks a significant leap forward for the partnership and is anticipated to attract a broad spectrum of investors. Notably, the deal received ratings from S&P Global and the Kroll Bond Rating Agency.
The Value of This Collaboration
Victor Kuznetsov, co-founder and managing director of Imperial Fund Asset Management, highlighted the significance of partnering with Atlas. This collaboration allows investors to tap into high-quality fixed income products supported by reliable U.S. residential mortgages. The partnership is likely to enhance the operational effectiveness of both firms.
Atlas Merchant Capital's Extensive Expertise
Atlas Merchant Capital brings a wealth of experience to the financial services investment sector. They will not only work together but also actively oversee investment strategies related to mortgage securities. David Schamis, co-founder and chief investment officer at Atlas, points out that the surge of private credit opportunities in the residential mortgage sector suggests the potential for strong returns. A&D is regarded as the ideal partner to seize these emerging prospects.
About Atlas Merchant Capital
Founded in 2013 by Bob Diamond and David Schamis, Atlas Merchant Capital operates out of New York and London. The firm centers its focus on varied investment opportunities within the financial services sector, employing a partnership-oriented approach that aims for long-term success. Their management team brings extensive experience from highly regarded financial institutions, giving them the insight needed to identify and act on promising market chances.
About A&D Mortgage
A&D Mortgage is a key player in the national mortgage lending field, recognized for its dedication to the non-agency sector. With a servicing portfolio that exceeds $8 billion, they consistently rank among the leaders in the industry. Their diverse offerings cover conventional, government, and non-QM loan products, reflecting a comprehensive lending strategy.
About Imperial Fund Asset Management
Imperial Fund Asset Management has established itself as a proficient investment manager focused on the residential mortgage sector. Since its founding in 2014, the firm has successfully managed billions in securitizations, demonstrating its ability to handle a wide range of mortgage-related investment portfolios.
Frequently Asked Questions
What is the primary goal of the Atlas and A&D partnership?
The partnership aims to expand A&D’s mortgage securitization platform and invest in a diverse array of mortgage securities.
What impact does the increase in interest rates have on the mortgage market?
Increasing interest rates have caused dislocations in the mortgage market, opening opportunities for investors to capitalize on favorable trends as the market stabilizes.
How significant is A&D Mortgage in the residential lending market?
A&D Mortgage is a prominent player, having completed over $10 billion in originations since 2020 and maintaining a respected servicing portfolio.
Who are the key figures at Atlas Merchant Capital?
Bob Diamond and David Schamis, co-founders, play significant roles in guiding the firm’s investment strategies and partnership approach.
What does the recent partnership mean for investors?
The collaboration is expected to offer investors access to quality fixed income products, enhancing investment opportunities in the residential mortgage space.
