Castlelake and Invictus Join Forces to Revitalize Mortgage Market
Castlelake and Invictus Partnership Overview
Castlelake L.P. has entered into an exciting partnership with Invictus Capital Partners, aiming to invest in up to $2 billion in new residential mortgages. This alliance between two renowned alternative investment managers highlights the growing confidence in the residential credit sector, potentially reshaping investment dynamics.
Strategic Goals of the Partnership
The collaboration will enable Castlelake to offer its investors access to high-quality mortgage whole loans. By investing alongside Invictus, both firms expect significant contributions to their loan investment platforms, amidst increasing demand for residential loans in the current market climate.
Castlelake’s Vision
Isaiah Toback, Partner and Deputy Co-CIO at Castlelake, expressed enthusiasm about the partnership, stating, "We are pleased to engage with Invictus, who we believe has a loan sourcing and credit underwriting approach that aligns with our granular data-driven investment philosophy and focus on downside protection." This strategic collaboration seeks to leverage both firms' strengths in navigating the complexities of the residential mortgage landscape.
Invictus’ Perspective
Michael Warden, Senior Managing Director and CEO at Invictus, emphasized the significance of this partnership. "We believe this relationship with Castlelake underscores the recognition from sophisticated alternative investment managers of the vast opportunity available in the residential credit market, which represents the largest sector in asset-based finance worldwide." His insights reflect a shared vision for promoting high-quality loans as essential components of alternative credit portfolios.
Investment Opportunities and Track Record
With a history of 20 years in asset-based investments, Castlelake has showcased its ability to acquire and finance approximately $7 billion in residential and commercial real estate loans. Meanwhile, Invictus has established itself as a formidable player in residential loan investing, having successfully acquired over 70,000 loans valued at more than $35 billion since its inception. This partnership presents an exciting opportunity for both entities to expand their reach in the residential credit market.
About Castlelake and Invictus Capital Partners
Castlelake, L.P., founded in 2005, manages around $25 billion in assets on behalf of a diverse global investor base. The firm boasts a team of over 220 professionals, including 80 dedicated investment professionals spread across North America, Europe, and Asia.
Invictus’ Operational Excellence
Invictus Capital Partners, established in 2008, specializes in residential credit investing, overseeing over $20 billion in gross assets. Their motto revolves around leveraging deep industry expertise in residential debt, including high-yielding and distressed loans. With more than 200 professionals dedicated to this mission, Invictus is set to maximize investment opportunities in the residential credit market.
Future Outlook
The collaboration between Castlelake and Invictus signifies a strategic maneuver aimed at tapping into a growing sector. The residential mortgage market is evolving, and with both firms committed to providing quality investment opportunities, investors can expect favorable conditions in the near future.
Frequently Asked Questions
What is the significance of the Castlelake and Invictus partnership?
This partnership aims to invest in $2 billion in new residential loans, enhancing opportunities in the mortgage sector and promoting high-quality loan exposure for investors.
How does this investment benefit Castlelake’s strategy?
This investment allows Castlelake to align with Invictus’s loan sourcing and credit underwriting practices, enhancing its data-driven approach while focusing on downside protection for its investors.
What is Invictus Capital Partners known for?
Invictus is recognized for its specialization in residential credit investing and has successfully acquired a significant number of loans, contributing to its prominent position in the market.
How long have Castlelake and Invictus been in the investment sector?
Castlelake has been active for 20 years, while Invictus has operated since 2008, both establishing themselves as key players in alternative asset management.
What does this partnership indicate for the future of residential credit?
The alliance reflects growing confidence in the residential credit market, pointing to increased investment opportunities and a potential shift in how these loans are viewed in alternative credit portfolios.
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