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.

Pagaya’s Centralized AI-Powered Network Facilitates Credit Union’s Access to Capital from Leading Alternative Investment Firms

NEW YORK – Pagaya Technologies LTD. (NASDAQ: PGY) (“Pagaya” or “the Company”), a global technology company delivering artificial intelligence infrastructure for the financial ecosystem, announced today a partnership with a group of leading alternative investment firms – Angelo Gordon, ATLAS SP Partners, and Värde Partners – to provide funding for a multi-billion dollar credit union.

Despite current market conditions in the regional banking sector and rising interest rates, credit unions and banks continue to focus on the well-being of their members and the communities they serve. Tightened credit boxes and credit policies are putting more liquidity pressure on these institutions. Pagaya’s unique funding network and AI capabilities are well positioned to solve this challenge by helping to stabilize the credit union’s balance sheet and provide a scalable solution to the banking ecosystem.

“The volatility in the financial markets over the last twelve months has enabled our platform to prove its ability to identify and execute on interesting opportunities in the face of a rapidly evolving environment and expanding opportunity set,” said T.J. Durkin, Head of Structured Credit at Angelo Gordon. “Leveraging the Pagaya AI network accelerated our ability to both analyze the underlying data of loans being sold and provide efficient liquidity to the sellers of those credits.”

“Since the inception of ATLAS SP Partners as a new, independent franchise, we have been focused on delivering innovative asset-backed financing solutions and enabling commercial activity and economic growth for our clients,” said a spokesperson for ATLAS SP Partners. “We are proud to have worked with a longstanding partner, Pagaya, in an expedited timeline to provide replicable financing alternatives for our clients in this market environment.”

“We are pleased to bring private capital solutions to credit unions and other financial institutions looking to make room for growth in their balance sheets,” said Aneek Mamik, Partner and Head of Financial Services at Värde. “The collaboration with Pagaya and other like-minded investors expands our financing reach, improves our underwriting capabilities, and enhances our ability to bring dependable capital to an increasingly dislocated credit market.”

“Our AI network has two key pillars of differentiation: capital strategy and sustained origination growth through our AI, leveraging FCRA-compliant consumer data,” said Gal Krubiner, Co-Founder and CEO of Pagaya. “We remain laser-focused on bringing together leading U.S. and global investors and continuing to enable originators to offer consistent financial products. We offer a scalable solution to this U.S. economic crisis and look forward to replicating this for other institutions in the future.”

About Pagaya

Pagaya (NASDAQ: PGY) 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, Tel Aviv and Boston. For more information, visit pagaya.com.

About Angelo Gordon

Angelo Gordon is a privately-held alternative investment firm founded in November 1988. The firm currently manages approximately $53 billion with a primary focus on credit and real estate strategies. Angelo Gordon has over 650 employees, including more than 200 investment professionals, and is headquartered in New York, with associated offices elsewhere in the U.S., Europe, and Asia. For more information, visit www.angelogordon.com.

About ATLAS SP Partners

ATLAS SP Partners is a global investment firm providing tailored solutions, industry expertise and execution certainty on asset-backed financing and capital markets activities that fuel business innovation and growth. ATLAS SP Partners offers a suite of flexible solutions across asset-backed warehouse financing, forward flow and asset purchase, and capital markets and distribution services. Companies of all maturities, from early-stage growth to large public companies, operating across real estate, corporate and consumer financing turn to ATLAS SP Partners for capital and advisory solutions. To learn more, please visit www.atlas-sp.com.

About Varde 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 $13 billion in assets with teams in North America, Europe, and Asia Pacific focused on Corporate & Traded Credit, Real Estate, and Financial Services. For more information, please visit www.varde.com.

Värde and Chesswood Announce Forward Flow Agreement for Equipment Loan and Lease Receivables

NEW YORK and TORONTO – Värde Partners, a leading global alternative investment firm, and Chesswood Group Limited (TSX: CHW), a specialty finance company with 40 years of experience in the commercial equipment finance market, today announced an agreement for the forward purchase of equipment loan and lease receivables originated by Chesswood subsidiaries Pawnee Leasing Corporation and Tandem Finance Inc.

“We are excited to work with Värde Partners as part of expanding Chesswood’s US equipment finance business”, said Ryan Marr, President & CEO of Chesswood.  “Värde’s deep expertise in equipment finance and long-term investment approach makes them an ideal funding partner for the Chesswood Group of companies.”

“We are pleased to support the growth of Pawnee Leasing and Tandem Finance given their respected positions and long operating history in small-ticket equipment finance,” said Aneek Mamik, Partner and Global Head of Financial Services from Värde Partners. “This funding of high quality equipment builds on our leading position in providing asset lending solutions to underserved parts of the economy. Hard asset backed financing provides particularly good downside protection in an uncertain economic environment while allowing us to participate in industries where capex spending remains robust.”

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 $13 billion in assets with teams in North America, Europe, and Asia Pacific focused on Corporate & Traded Credit, Real Estate, and Financial Services. For more information, please visit www.varde.com.

Chesswood Group Limited is a holding company whose subsidiaries engage in the business of specialty finance (including equipment finance throughout North America, and vehicle finance in Canada), as well as the origination and management of private credit alternatives for North American investors. Based in Toronto, Canada, the firm is publicly traded on the Toronto Stock Exchange (TSX: CHW).

Värde Partners and Hawkins Way Capital Make Fourth Acquisition Bringing Total Capitalization of JV to Over $1 Billion in Its First Year

NEW YORK – Värde Partners, a leading global alternative investment firm, and Hawkins Way Capital, a vertically integrated real estate company, announced today the recent purchase of 525 Lexington Avenue, a 655 room non-operating hotel in the Midtown East neighborhood of Manhattan. This brings the total capitalization of the JV formed by Värde Partners and Hawkins Way Capital to over $1 billion within its first year with a portfolio of eight value-add and distressed hospitality and housing assets in major U.S. cities.  

“We are excited about the level of activity we’ve engaged in through our JV with Värde Partners. We continue to leverage our hospitality, multifamily and student housing owner-operator expertise to refresh and/or reposition assets in order to maximize value,” said Ross Walker Co-Founder and Managing Partner of Hawkins Way Capital.  

“Our strategy for the joint venture has not changed: we aim to build a high quality, inflation protected, and cash flow generative portfolio,” said Tim Mooney, Partner at Värde Partners. “Coming out of the pandemic, we continue to find distressed hospitality and select housing assets in prime locations in major gateway cities where we can drive this opportunity.” 

The 525 Lexington property is a 35-story, 406,000 square foot building currently configured as a 655 key hotel with over 16,000 square feet of meeting space, including two double height ballrooms, a large outdoor terrace on the 16th floor, a penthouse fitness center, and a large restaurant/lounge space on the ground floor. Originally called the Shelton, 525 Lexington was the world’s tallest hotel at its completion in 1923 and is designated as a landmark building in New York City. It was converted to a Marriott branded hotel in 1990 and operated as such until its closure at the beginning of the Covid-19 pandemic.  

The joint venture’s portfolio also comprises the DoubleTree by Hilton Metropolitan in the heart of Midtown Manhattan, the Sheraton Boston in the Back Bay neighborhood of Boston, and five other residential developments in New York, California, and Rhode Island.  

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 $13 billion in assets with teams in North America, Europe, and Asia Pacific focused on Corporate & Traded Credit, Real Estate, and Financial Services. For more information, please visit www.varde.com.   

About Hawkins Way Capital

Hawkins Way Capital, co-founded by Managing Partners Ross Walker and Karan Suri, is a vertically integrated real estate company with $2.5 billion of assets under management on behalf of institutions and individuals focused on value-add and opportunistic investments across various asset classes and geographies. The company seeks niche theses targeting attractive risk-adjusted returns. Its disciplined approach leverages the principals’ investing experience and extensive network to execute strategies that offer long-term value. Hawkins Way has offices in Los Angeles and New York. For more information, please visit www.hawkinsway.com. 

Värde Views: Opportunities in 2023

Värde Partners CIOs Ilfryn Carstairs, Brad Bauer and Giuseppe Naglieri, reflect on credit markets, areas of opportunity and how they see the current cycle shaping up as we start off 2023 in a position of further uncertainty around inflation, rates and the cost of capital around the world.

Download Värde Views here.