Värde Commits $1.3 Billion in Asset-Based Private Credit Transactions in 2023

NEW YORK and LONDON Värde Partners, a leading global alternative investment firm specializing in credit and credit-related assets, today announced that it committed $1.3 billion across its asset-based lending and diversified private credit platform in 2023. These investments facilitated approximately $9 billion of commercial and consumer loans in North America and Europe.

“Market dislocation, exacerbated by bank regulation and liquidity challenges, presents a significant opportunity for Värde to step in as a strategic partner, originating financing for underserved borrowers and providing liquidity solutions,” said Aneek Mamik, New York-based Partner at Värde. “We believe Värde’s expertise across the many facets of lending, from owning financial services platforms to loan servicing, is a competitive edge as we source and provide exposure to attractive, downside-protected investments on behalf of our investors.”

For more than 30 years, Värde has served as a premier credit and liquidity provider, investing across capital structures, industries, and market cycles. In recent years, Värde has expanded its origination team and capabilities to meet the growing financing and liquidity needs. Värde’s approach is informed by deep sector expertise and a global relative value perspective.

The firm’s priority themes in 2024 include:

  • Commercial Finance: Loans and leases to small and midsize businesses, including business-essential equipment finance, receivables finance, inventory finance, and SME financing across industries such as technology, industrial, manufacturing, and specialty vehicles.
  • Consumer Finance: Senior secured loans for prime and near-prime borrowers backed by financial assets, such as home equity, auto, and other titled vehicles.
  • Diversified Private Credit: Lending against or investing in assets or contractual cash flows that are often less correlated to other financial assets, including fund finance and homebuilder finance.

“The widening capital supply/demand gap is driving increased lending opportunities across nearly all markets and sectors, particularly opportunities to partner with non-bank lenders as they look to the private markets to support their lending to the real economy,” said Barbara Richter, London-based Managing Director. “Importantly, the breadth of our platform allows us to be selective.”

“We are pleased to have successfully tailored solutions for many high-quality borrowers last year,” added Monty Cook, New York-based Senior Managing Director. “Our expertise in providing capital to support asset growth across a wide array of asset classes has positioned Värde as a preferred lender, and we look forward to working with new and familiar partners in 2024.”

About Värde Partners

Värde Partners is a leading global alternative investment firm specializing in credit and credit-related assets. Founded in 1993, the firm has invested more than $100 billion across the credit quality and liquidity spectrum in both public and private markets. Värde currently manages approximately $13 billion in assets with teams in North America, Europe, and Asia Pacific focused on Corporate & Traded Credit, Real Estate, and Financial Services & Diversified Private Credit. For more information, please visit www.varde.com.

Värde Views: 2024 Market Outlook and Opportunities

Värde Co-CIOs Ilfryn Carstairs, Brad Bauer, and Giuseppe Naglieri discuss the outlook and opportunities for credit investing in 2024, examining the forces shaping the economic landscape, areas of potential volatility, and the trajectory of the credit cycle.

Download Värde Views here.

Värde Appoints Brad Bauer to Co-Chief Executive Officer

NEW YORK – Värde Partners, a leading global alternative investment firm, today announced that Brad Bauer has joined Ilfryn Carstairs to lead the firm as Co-Chief Executive Officer.

“Brad has demonstrated exceptional leadership and vision throughout the years, and this elevation was a natural progression that received the full support of the partners,” said George G. Hicks, Co-Founder and Co-Executive Chair of Värde. “Värde has operated with co-leaders at the helm for much of the firm’s history, and we believe this structure reflects the realities of running the business today during a dynamic period in the industry.”

“Our intentional leadership framework with Co-CEOs in the U.S. and Asia aligns with the global nature of our firm and our LP base,” said Ilfryn, Co-CEO and Co-CIO of Värde. “It underscores Värde’s unwavering focus on delivering for our investors as we continually align our platform with the investing environment and the needs of our LPs. Brad and I have worked together for over 16 years, and we leverage each other’s strengths. I am very much looking forward to having him alongside me as Co-CEO.”

Brad has over 20 years of experience in the alternatives industry and has held various investing and business leadership roles since joining Värde in 2007. He continues to oversee Värde’s private markets investing as Co-CIO.

About Värde Partners

Värde Partners is a leading global alternative investment firm specializing in credit and credit-related assets. Founded in 1993, the firm has invested more than $100 billion across the credit quality and liquidity spectrum in both public and private markets. Värde currently manages approximately $13 billion in assets with teams in North America, Europe, and Asia Pacific focused on Corporate & Traded Credit, Real Estate, and Financial Services & Diversified Private Credit. For more information, please visit www.varde.com.

Värde Partners and Freehold Capital Management Form Partnership to Acquire Master-Planned Communities

BOSTON and MINNEAPOLIS – Freehold Capital Management, a prominent developer of master-planned communities and build-to-rent neighborhoods, and Värde Partners, a leading global alternative investment firm, announced the formation of a partnership to acquire two expansive master-planned communities: Savannah Quarters in Pooler, Georgia and Grande Dunes in Myrtle Beach, South Carolina.

Savannah Quarters is a 2,600-acre mixed-use master-planned community. Located approximately 14 miles from Savannah, Georgia, the community is home to more than 2,800 families with approximately 700 remaining homes. Grande Dunes is a 2,200-acre mixed-use master-planned community that is home to more than 2,300 families with multiple remaining parcels to be developed.

The assets acquired include current and future home sites, commercial parcels, and amenities including Grande Dunes’ marina and Ocean Club. Under Värde and Freehold Capital Management’s ownership, Savannah Quarters and Grande Dunes will continue to actively develop new neighborhoods, with additional lots expected to be available in the near term.

“We are excited about our partnership with Värde Partners and the acquisition of Savannah Quarters and Grande Dunes. This venture marks a significant step forward for Freehold Capital Management. These master-planned communities offer substantial opportunities for growth and development, and we are committed to maximizing their potential. With our combined expertise and resources, we aim to enhance these communities and create lasting value in Pooler, Georgia, and Myrtle Beach, South Carolina. We look forward to continuing to seek opportunities together and drive success in the world of master-planned communities and real estate development,” Casey Tischer, Principal at Freehold Capital Management.

“With continued strong demand for housing in major Sunbelt markets, we believe these communities offer a compelling and complementary addition to our existing portfolio of master-planned communities. Värde has 30 years of experience in U.S. residential land development and homebuilding, and we welcome the collaboration with Freehold Capital Management to expand on the vision and reputation of these desirable communities,” said Brendan Bosman, Senior Managing Director at Värde Partners.

About Freehold Capital Management

Freehold Capital Management (FCM) is an opportunity-focused investor and developer of real estate throughout the United States. It is headquartered in Boston, MA. Since its founding in 2013, FCM has focused on a broad range of housing, including residential mixed-use and master-planned developments, as well as concentrated rental communities. These ventures extend from FCM’s Freehold Communities® and 360 Communities® brands. Freehold Communities is one of the nation’s largest developers of award-winning, large-scale, mixed-use, and master-planned communities. And 360 Communities is a fast-growing provider of high-quality new homes for lease.

Freehold Capital Management has assets, investments, and offices all over the county, with over 7,000 acres of land, 26,000 units for sale, as well as multifamily units, and over 500,000 square feet of retail and office development. 360 Communities currently has approximately 2000 units of rental and multifamily housing either leased, in lease-up, or under development.

For more information, please visit www.Freeholdcm.com.

About Värde Partners

Värde Partners is a leading global alternative investment firm specializing in credit and credit-related assets. Founded in 1993, the firm has invested more than $95 billion across the credit quality and liquidity spectrum in both public and private markets. Värde currently manages $13 billion in assets with teams in North America, Europe, and Asia Pacific focused on Corporate & Traded Credit, Real Estate, and Financial Services & Diversified Private Credit.

Some of Värde’s investments in master-planned communities include Estrella in Goodyear, AZ; Estancia in Scottsdale, AZ; Daybreak in South Jordan, UT (SLC metro); Windsong Ranch in Prosper, TX (Dallas metro); Vistancia in Peoria, AZ; Verde River in Scottsdale, AZ; and Sunfield in Buda, TX (Austin metro).

For more information, please visit www.varde.com.

Värde Raises Nearly $1.5 Billion for Asset-Based Lending Opportunities

MINNEAPOLIS and NEW YORK – Värde Partners, a leading global alternative investment firm, announced it has raised nearly $1.5 billion for asset-based lending opportunities through The Värde Asset Lending Fund II and related accounts and co-investments. The firm received support from a global base of institutional investors.

Through its established lending platforms and relationships, Värde originates loans and provides financing solutions for consumers, businesses, and lenders. The firm invests in lending strategies across a range of industries, including specialty finance (auto, equipment, and personal loans), commercial real estate (CRE), and technology.

“We are grateful for the strong support from new and longtime investors. Unfolding in front of us is one of the most compelling credit investment environments since the Global Financial Crisis, and we look forward to building on our track record of delivering attractive risk-adjusted returns for our investors. The surge in demand for non-bank financing – an acceleration of a more than decade-long trend – underscores the need for private credit and magnifies already significant lending opportunities,” said Brad Bauer, Partner & Co-Chief Investment Officer.

Värde’s approach to sourcing and structuring investments with strong downside protection is honed by 30 years of experience originating credit backed by a range of assets.

“The growing demand for asset-based lending solutions and strategies aligns with our strengths and the global platform we have built over many years – a platform that provides insight into the credit and financing needs of millions of consumers and tens of thousands of businesses. Värde brings an experienced and well-connected team to the table as we structure customized solutions for strong borrowers in underserved parts of the market,” said Aneek Mamik, Partner & Global Head of Financial Services & Diversified Private Credit.

“There is a tremendous opportunity for CRE lending as the market addresses a significant amount of maturities against a backdrop of higher interest rates and reduced bank balance sheets. We believe this attractive supply/demand dynamic for lenders combined with our platform, which has originated $6.5 billion of CRE loans since 2017 and integrates our longstanding partnership with a leading loan service provider, positions us exceptionally well in this market,” said Jim Dunbar, Partner & Head of Real Estate Lending.

Värde’s latest Värde Views, Private Credit Opportunities in the Wake of Tighter U.S. Banking Regulations, discusses these opportunities in more detail.

About Värde Partners

Värde Partners is a leading global alternative investment firm specializing in credit and credit-related assets. Founded in 1993, the firm has invested more than $95 billion across the credit quality and liquidity spectrum in both public and private markets. Värde currently manages $13 billion in assets with teams in North America, Europe, and Asia Pacific focused on Corporate & Traded Credit, Real Estate, and Financial Services & Diversified Private Credit. For more information, please visit www.varde.com.

Pagaya and Värde Continue Partnership to Provide Capital Support to Credit Unions

NEW YORK – Pagaya Technologies LTD. ՄNASDAQր PGYՅ (“Pagaya” or “the Company”), a global technology company delivering artificial intelligence infrastructure for the financial ecosystem, and Värde Partners, a leading global alternative investment firm specializing in credit and credit-related assets, announced the closing of PAID 2023՞S2, continuing a partnership to provide funding and growth for credit unions.

In the current macroenvironment, coupled with regulatory requirements and increasing liquidity pressures, there is growing demand from credit unions and banks for solutions to help optimize their balance sheets. This transaction builds on Pagaya’s proven track record of partnering with well-capitalized investors like Värde to solve these challenges. Following a similar deal in May, Pagaya and Värde are partnering to provide over $100 million in capital to a multi-billion dollar credit union, in exchange for consumer credit assets that will be securitized in the PAID 2023՞S2 transaction.

Pagaya’s unique tech-enabled two-sided network allows financial institutions to grow originations, while offering investors real-time access to diversified assets at scale. By enabling originations and stabilizing balance sheets, Pagaya delivers a scalable solution to the banking ecosystem and connects more people to financial opportunity.

“We’re pleased to provide asset lending solutions and bring dependable capital to an increasingly dislocated credit market. Leveraging Pagaya’s rich data network and ability to execute at speed, we are able to provide even greater liquidity and financing support to credit unions and other financial institutions,” said Aneek Mamik, Partner and Global Head of Financial Services & Diversified Private Credit at Värde.

“We continue to quickly leverage consumer data to facilitate capital investment for depository institutions in these volatile markets,” said Paul Limanni, Chief Capital Officer at Pagaya. “Together with our like-minded partners at Värde, we’re able to continue to expand reach and provide attractive capital solutions to platforms and investors.”

About Pagaya

Pagaya ՄNASDAQր PGYՅ is a global technology company making life-changing financial products and services available to more people nationwide, as it reshapes the financial services ecosystem. By using machine learning, a vast data network and a sophisticated AI-driven approach, Pagaya provides comprehensive consumer credit and residential real estate solutions for its partners, their customers, and investors. Its proprietary API and capital solutions integrate into its network of partners to deliver seamless user experiences and greater access to the mainstream economy. Pagaya has offices in New York and Tel Aviv. For more information, visit pagaya.com.

About Värde Partners

Värde Partners is a leading global alternative investment firm specializing in credit and credit-related assets. Founded in 1993, the firm has invested through multiple credit cycles, building on its roots in special situations and distressed to invest more than $95 billion across the credit quality and liquidity spectrum in both public and private markets. Värde currently manages over $12 billion in assets with teams in North America, Europe, and Asia Pacific focused on Corporate & Traded Credit, Real Estate, and Financial Services & Diversified Private Credit. For more information, please visit www.varde.com. Click here to read Värde’s latest Värde Views on private credit opportunities in the wake of tighter U.S. banking regulations.