Deephaven Mortgage Surpasses $1 Billion in Loans

CHARLOTTE – Deephaven Mortgage, the premier provider of private capital for Non-QM residential mortgage loans, announced today that it has surpassed the $1 billion mark in total loans purchased life-to-date. The company is owned by funds of Värde Partners.

“This is a milestone event for Deephaven Mortgage,” said Matt Nichols, Founder and CEO of Deephaven. “Our team continues to help lenders expand their offerings and provide opportunities for home ownership to qualified buyers,” he continued. “The Non-QM market is showing strong signs of growth as lenders adapt their business model to higher rates.”

Deephaven also recently successfully completed its second securitization transaction, a $221 million dollar deal rated by S&P. The securitization was oversubscribed and priced well.

“Deephaven’s leadership in this market has enabled the company to continue to grow. The securitization was well received and we believe this demonstrates the confidence investors have in the company.” said Matt Kennedy, Managing Director of Värde Partners.

About Deephaven Mortgage:
Deephaven Mortgage is the premier provider of private-capital liquidity for Non-QM residential mortgage loans. The Non-QM specialist has purchased over $1billion in Non-QM residential mortgage loans from over 65 different lenders. The company was founded in 2012 and is headquartered in Charlotte, NC.

About Värde Partners:
Värde Partners is a $12 billion global alternative investment firm that employs a credit-oriented, value-based approach to investing across a broad array of geographies, segments and asset types, including real estate, corporate credit, mortgages, specialty finance, transportation and infrastructure. The firm sponsors and manages a family of private investment funds with a global investor base that includes foundations and endowments, pension plans, insurance companies, other institutional investors and private clients. Now in its third decade, Värde employs 250 people with main offices in Minneapolis, London and Singapore and additional offices around the world.

Värde Partners and York Capital Management Sell Redcape Hotel Group to Moelis Australia

SYDNEY – Värde Partners and York Capital Management today agreed to sell Redcape Hotel Group to Moelis Australia for $677 million. Redcape is one of Australia’s largest operator of hotels, with 25 properties in New South Wales and Queensland. The deal is expected to close in July 2017.

The sale to Moelis represents the final stage of ownership. Värde and York acquired Redcape in 2012. The Coles freehold portfolio was listed as Hotel Property Investments in 2013.

“The hotel and pub market in Australia continues to be strong,” said Haseeb Malik, Senior Managing Director for Värde Partners. “Partnering with York Capital, we have been able to position the Redcape properties to thrive in that market,” he continued.

Wyatt Wachtel, Managing Director at York Capital, said: “We are pleased to have partnered with Värde on this successful investment and believe Redcape is well positioned for the future.”

The Redcape portfolio consists of 25 gaming focused hotels, 22 of which are located in New South Wales and three in Queensland. In New South Wales, the Redcape portfolio has a strong market position benefitting from the population growth corridors of Sydney. The portfolio contains 18 of the top 200 gaming hotels in New South Wales. On completion of the transaction, the majority of Redcape’s existing head office staff will be employed directly by Moelis Australia and will continue to operate the Redcape portfolio of gaming hotels pursuant to a hotel operating agreement.

Värde and York were advised by Goldman Sachs and Arnold Bloch Leibler. Moelis Australia was advised by KL Gates.

About Värde Partners:
Värde Partners is a $12 billion global alternative investment firm that employs a credit-oriented, value-based approach to investing across a broad array of geographies, segments and asset types, including real estate, corporate credit, mortgages, specialty finance, and transportation. The firm sponsors and manages a family of private investment funds with a global investor base that includes foundations and endowments, pension plans, insurance companies, other institutional investors and private clients. Now in its third decade, Värde employs 250 people with main offices in Minneapolis, London and Singapore and additional offices around the world.

About York Capital Management:
York Capital Management is an investment firm that was established in 1991. The firm pursues a multi-strategy investment style and manages over $16 billion. The primary offices are in New York, London, and Hong Kong.

Värde Partners Acquired Apita Nagoya Minami Retail Facility

NAGOYA, JAPAN – Värde Partners, the $12 billion global alternative investment firm, today closed on its acquisition of the Apita Nagoya Minami retail asset located in central Nagoya. The 440,635 square foot retail facility was originally built in 1996 and is located in a well-populated area with strong access to major throughways within the City of Nagoya. Terms of the transaction were not disclosed.

About Värde Partners
Värde Partners employs a credit-oriented, value-based approach to investing across a broad array of geographies, segments and asset types, including real estate, corporate credit, mortgages, specialty finance, and transportation. The firm sponsors and manages a family of private investment funds with a global investor base that includes foundations and endowments, pension plans, insurance companies, other institutional investors and private clients. Now in its third decade, Värde employs 250 people with main offices in Minneapolis, London and Singapore and additional offices around the world. www.varde.com

Värde Partners sells Oakwood Homes to Clayton Properties Group

MINNEAPOLIS – Värde Partners, along with its minority partner Mountain Real Estate Capital (“MREC”), sold Oakwood Homes to Clayton Properties Group, a division of Clayton Homes, a Berkshire Hathaway company. The deal closed on July 3; terms were not disclosed.

Värde and MREC invested in Oakwood Homes in February 2013 during a challenging time for the nation’s homebuilding industry. Värde and MREC recapitalized Oakwood and provided additional capital to grow the business, which is focused on land development and homebuilding on the Front Range. The company has delivered 15,000 homes to date since its founding in 1991 by CEO Pat Hamill. The company sold 1,200 homes in 2016 alone, which represents a 20 percent increase from 2015.

“Värde made a considerable investment in Oakwood based on our faith in the Company’s leadership and its valuable land assets around Denver and Colorado Springs,” said Brendan Bosman, Managing Director of U.S. Real Estate for Värde. “Our investment allowed Oakwood to expand into the Salt Lake City market and more than triple annual home closings in under 5 years. We are excited for Pat Hamill and the rest of the Oakwood team as they continue to grow with Clayton’s investment.”

Värde and Mountain Real Estate Capital were represented by Moelis & Company on the transaction.

About Värde Partners:
Värde Partners is a $12 billion global alternative investment firm that employs a credit-oriented, value-based approach to investing across a broad array of geographies, segments and asset types, including real estate, corporate credit, mortgages, specialty finance, and transportation. The firm sponsors and manages a family of private investment funds with a global investor base that includes foundations and endowments, pension plans, insurance companies, other institutional investors and private clients. Now in its third decade, Värde employs 250 people with main offices in Minneapolis, London and Singapore and additional offices around the world.

About Mountain Real Estate Capital:
Since 1993, Mountain Real Estate Capital has been a leading private equity source for real estate land developers and builders. MREC is headquartered in Charlotte, N.C. with offices in Minneapolis, and San Diego.  Since 2010, MREC has committed approximately $1B to acquire over 48,000 lots/homes in over 400 communities in 20 states.  Since 2016, MREC’s primary focus has been managing its investments as an asset manager to develop and sell lots/homes to builders and developers. (www.mrec.com)

Värde Sells Controlling Stake in Aliseda to Popular

MADRID – Värde Partners, the $12 billion global investment firm, will sell 51% of Aliseda to Banco Popular, now under the control of Santander, pursuant to a call option structured by Värde and exercised by Banco Popular.  The enterprise value of the company implied by the option price is in excess of €600 million. The transaction will likely close in the third quarter. Värde acquired a controlling stake in the business in December 2013 as part of a carve-out of the platform from Banco Popular. Banco Popular was subsequently acquired by Santander on June 7, 2017. Aliseda holds the exclusive contract to manage all of the real estate related non-preforming loans and assets of Banco Popular during its original term of 10 years, with a 5 year tail running to 2028.  Assets under management are currently more than €30 billion in terms of gross book value.

Over the past three years, Värde has overseen the build out and growth of the business including the introduction of various operational enhancements, the opening up of new sales channels, and the expansion of the team to over 350 employees. Under Värde’s ownership, total sales of troubled real estate assets executed through the platform exceeded €6 billion in terms of gross book value. Reflective of the company’s strong revenue and cash flow growth during Värde’s ownership, the company was successfully recapitalised in November 2015 with strong support from various financial institutions.

“We are delighted to agree to the sale of Aliseda and proud of what the company has been able to accomplish under our ownership. We believe the company is well positioned to deliver value to Banco Popular and wish the company continued success. This transaction was important to Värde’s expansion in Spain and we continue to be very focused on our investment program in the country through our portfolio companies as well as identifying new investing opportunities,” said Francisco Milone, Senior Managing Director at Värde and current Chairman of Aliseda.

About Värde Partners:
Värde Partners is a $12 billion global alternative investment firm that employs a credit-oriented, value-based approach to investing across a broad array of geographies, segments and asset types, including real estate, corporate credit, mortgages, specialty finance, and transportation. The firm sponsors and manages a family of private investment funds with a global investor base that includes foundations and endowments, pension plans, insurance companies, other institutional investors and private clients. Now in its third decade, Värde employs 250 people with main offices in Minneapolis, London and Singapore and additional offices around the world.

Värde Named Hybrid Hedge Fund Manager of the Year by Institutional Investor

NEW YORK – Värde Partners, the $12 billion global investment firm, was named Hybrid Hedge Fund Manager of the Year by Institutional Investor. Värde was selected from a field of five firms. The award is based on a number of criteria including risk management, investment discipline and selection, portfolio management, performance track record, stability of investment team, investor relations and back-office infrastructure. Award winners are determined through a combination of analysis by the editorial staff and a formal poll of investors.

“This award is a great reflection on the hard and diligent work of many employees across the firm. Our teams strive to provide quality service and great performance. We are proud of the work we do on behalf of our investors and it is gratifying to know that it is recognized,” said George Hicks, Founder, CEO and Co-CIO of the firm.

“We are thrilled with this honor from Institutional Investor,” said Jon Fox, Partner and Global Head of Business Development and Investor Relations, who accepted the award on behalf of the firm. “It is extremely satisfying to know that so many allocators voted to recognize Värde,” he continued.

Värde notes that the award referenced do not reflect the experiences of any Värde client and readers should not view such information as representative of any particular client’s experience or assume that they will have a similar investment experience as any previous or existing client.  The award is not indicative of the past or future performance of any Värde product or service.

About Värde Partners:
Värde Partners is a $12 billion global alternative investment firm that employs a credit-oriented, value-based approach to investing across a broad array of geographies, segments and asset types, including real estate, corporate credit, mortgages, specialty finance,  transportation and infrastructure. The firm sponsors and manages a family of private investment funds with a global investor base that includes foundations and endowments, pension plans, insurance companies, other institutional investors and private clients. Now in its third decade, Värde employs 250 people with main offices in Minneapolis, London and Singapore and additional offices around the world including New York.

Following a public call for nominations, the editorial staff of Institutional Investor magazine selects award nominees based on how strongly candidates – both those put forward via the call for nominations and those independently identified by the editorial staff – meet the criteria for their respective categories. Once the nominees are publicly announced, the magazine group then conducts a wide survey of U.S. institutional investors and invites them to vote for the manager nominees. Hedge fund managers are invited to vote for the investor nominees.

Institutional Investor‘s editorial staff analyzes the results of the voting to determine the winners.

The Hybrid Hedge Fund award recognized firms whose strategy relies primarily on a hedge fund/private equity hybrid investing model. Funds in this category likely will have longer lockups with a focus on illiquid assets and a blend of private equity and hedge fund investment fees. Fund strategies that qualify in this category include but are not limited to distressed debt and asset-based lending. Although strong consideration will be given to 2016 investment returns, performance is not the sole determinant for selection. Other criteria include risk management, investment discipline and selection, portfolio management, performance track record, stability of investment team, investor relations and back-office infrastructure. Source: http://www.hedgefundindustryawards.com/methodology.php.