Verdant Commercial Capital Obtains $75 Million Subordinated Debt Facility Provided by Värde Partners
CINCINNATI — Verdant Commercial Capital announced it recently closed on a $75 million subordinated debt facility provided by Värde Partners, a leading global alternative investment firm.
This capital will augment Verdant’s existing financing, allowing the company to further expand its balance sheet and help fuel Verdant’s rapid growth. Ultimately, this financing will help dealers sell more equipment by providing more access to equipment financing and make financing options more flexible for their customers.
“Additional capital helps support Verdant’s significant growth forecast these next few years as we continue our mission of helping our partners sell more equipment through flexible financing solutions,” said Mike Rooney, CEO of Verdant Commercial Capital. “Our new relationship with Värde is an important component to our long-term growth prospects.”
In under five years, Verdant has grown to be one of the top 10 independent equipment finance companies in the United States, with six divisions powering its growth: Industrials; Manufacturing; Specialty Vehicle; Golf, Sports & Entertainment; Renewables & Energy Efficiency; and Technology & Office Automation. Securing this additional capital is an endorsement of the Verdant platform that we believe efficiently originates exceptionally performing assets through its relationships with Tier I OEMs, dealers, distributors, and sellers of capital equipment.
“We found the flexibility of the Värde facility, including the ability to draw down on the line as we continue to expand, the most efficient vehicle for us,” said Robert Moskovitz, CFO of Verdant Commercial Capital. “This facility adds to our capital base fueling Verdant’s growth and building our balance sheet.”
“Verdant is increasingly establishing itself as a leader in equipment financing and we welcome the opportunity to support the company’s successful growth story,” said Aneek Mamik, Partner and Global Co-Head of Financial Services at Värde Partners. “Across the non-bank sector, lenders are increasingly able to provide faster and more flexible financing solutions that are better suited to individual customer and business needs. We see a significant and scalable investment opportunity to provide the alternative capital necessary to drive the continued growth of the non-bank sector.”
Värde Partners has more than 20 years of experience investing in consumer and commercial credit. The firm currently manages c.$2 billion of financial services debt and equity investments across a variety of underlying asset classes including secured and unsecured consumer loans, commercial equipment finance, billboards, residential housing and consumer and commercial credit cards.
About Verdant Commercial Capital
Verdant Commercial Capital is one of the top ten largest independent equipment finance companies in the United States. Verdant provides financing solutions for the acquisition of critical equipment and software in six industries: Industrials; Manufacturing; Specialty Vehicle; Golf, Sports & Entertainment; Renewables & Energy Efficiency; and Technology & Office Automation. Verdant brings partners the ability to fund business with transaction sizes from below $25,000 up to $100 million. The company is headquartered in Cincinnati and has offices in Dallas, Detroit, Los Angeles, and Minneapolis. Verdant was named a 2022 Top Workplace by The Enquirer Media. For more information, visit www.verdantcc.com.
About Värde Partners
Värde Partners is a leading global alternative investment firm with roots in credit and distressed. Founded in 1993, the firm has invested $90 billion since inception and manages over $13 billion on behalf of a global investor base. The firm’s investments span corporate and traded credit, real estate and mortgages, private equity and direct lending. Värde has offices in Minneapolis, New York, London, Singapore and other cities in Asia and Europe. For more information, please visit www.varde.com.
Taylor Morrison and Värde Partners Scale $850 Million Build-to-Rent Joint Venture with Nine Asset Closings Since Inception
SCOTTSDALE and MINNEAPOLIS —Taylor Morrison Home Corporation (NYSE: TMHC), a leading national land developer and homebuilder, and Värde Partners, a leading global alternative investment firm, are pleased to share that they have quickly scaled their Build-to-Rent joint venture. In the first several weeks since the venture’s inception, it has closed on nine assets across Texas, Florida, North Carolina and Arizona.
As previously announced in April, the joint venture was established to develop rental properties as a part of Taylor Morrison’s Build-to-Rent program. The venture includes $850 million in equity commitments, funded 60 percent by Värde Partners and 40 percent by Taylor Morrison. The agreement provides Värde with the exclusive opportunity to invest in the acquisition and development of Build-to-Rent projects identified by Taylor Morrison that meet the venture’s investment guidelines.
The capital will help finance the ongoing expansion of Taylor Morrison’s Build-to-Rent program, which began in 2019 through a branding and servicing relationship with Christopher Todd Communities, a successful early adopter of innovative, luxury rental communities.
“The growth in demand for rental housing in high quality suburban areas continues to outpace supply, creating substantial opportunities for institutional capital,” said Brendan Bosman, Senior Managing Director at Värde Partners.
“This vehicle offers the ability to efficiently scale our Build-to-Rent platform to capitalize on the attractive market dynamics in the horizontal rental arena with a known and respected capital partner. We believe we are in early innings of the evolution of this attractive space and remain very excited about its growth prospects,” said Erik Heuser, Taylor Morrison EVP and Chief Corporate Operations Officer.
In July 2021, the firms also entered into a land banking facility agreement to acquire and develop residential lots across the homebuilder’s markets of operation. Värde and Taylor Morrison have closed on 6,800 lots under the arrangement in 11 markets.
Värde Partners has 28 years of experience investing in real estate with substantial equity and credit investments in residential land development and homebuilding transactions. The Build-to-Rent joint venture and land banking facility will further increase Värde’s U.S. housing footprint in its target markets.
About Taylor Morrison
Headquartered in Scottsdale, Arizona, Taylor Morrison is one of the nation’s leading homebuilders and developers. We serve a wide array of consumers from coast to coast, including first-time, move-up, luxury, and 55-plus active lifestyle homebuyers under our family of brands—including Taylor Morrison, Esplanade, Darling Homes Collection by Taylor Morrison, and Christopher Todd Communities built by Taylor Morrison. From 2016-2022, Taylor Morrison has been recognized as America’s Most Trusted® Builder by Lifestory Research. Our strong commitment to sustainability, our communities, and our team is highlighted in our latest Environmental, Social and Governance (ESG) Report on our website. For more information about Taylor Morrison, please visit www.taylormorrison.com.
About Värde Partners
Värde Partners is a leading global alternative investment firm with roots in credit and distressed. Founded in 1993, the firm has invested $90 billion since inception and manages over $13 billion on behalf of a global investor base. The firm’s investments span corporate and traded credit, real estate and mortgages, private equity and direct lending. Värde has offices in Minneapolis, New York, London, Singapore and other cities in Asia and Europe. For more information, please visit www.varde.com.
American Homes 4 Rent and Värde Partners Enter Into $500 Million Land Banking Facility Agreement
- Partnership to support acquisition and development of land in American Homes 4 Rent’s markets
CALABASAS and MINNEAPOLIS – American Homes 4 Rent (NYSE: AMH) (the “Company”), a leading provider of high-quality single-family homes for rent, and Värde Partners, a leading global alternative investment firm, today announced that they have entered into a land banking facility agreement. This facility provides $500 million in initial capacity to acquire and develop new land opportunities as part of American Homes 4 Rent’s internal development platform. The two firms have recently closed their first six land transactions into the facility, representing total acquisition and development costs of over $150 million, and due diligence is underway on additional sites.
“We are excited to combine Värde’s extensive experience in U.S. housing with American Homes 4 Rent’s reputable homebuilding and development platform,” said Brendan Bosman, Senior Managing Director at Värde Partners. “The demand for high-quality single-family rental homes has never been higher despite a persistent shortfall in supply, creating opportunities to invest in segments that we believe are well-positioned for growth. We look forward to working with American Homes 4 Rent to capitalize on these trends and the strong dynamics in their core markets.”
Värde has 28 years of experience investing in real estate, with substantial equity and credit investments in residential land development and homebuilding transactions. This partnership further expands the firm’s U.S. housing footprint in its target markets.
“Our facility with Värde Partners will enable us to continue the strategic expansion of our development pipeline while also maintaining our commitment to a best-in-class investment grade balance sheet and reducing long-term risk,” said David Singelyn, Chief Executive Officer of American Homes 4 Rent. “With a continued focus on our disciplined underwriting process and a robust pipeline of development opportunities, we are well-positioned to execute our three-pronged growth strategy in our diversified portfolio footprint while driving value for shareholders.”
About American Homes 4 Rent
American Homes 4 Rent (NYSE: AMH) is a leader in the single-family home rental industry and “American Homes 4 Rent” is a nationally recognized brand for rental homes, known for high-quality, good value and resident satisfaction. We are an internally managed Maryland real estate investment trust, or REIT, focused on acquiring, developing, renovating, leasing, and operating attractive, single-family homes as rental properties. As of March 31, 2022, we owned 57,984 single-family properties in selected submarkets in 22 states. Additional information about American Homes 4 Rent is available on our website at www.americanhomes4rent.com.
About Värde Partners
Värde Partners is a leading global alternative investment firm with roots in credit and distressed. Founded in 1993, the firm has invested $90 billion since inception and manages over $13 billion on behalf of a global investor base. The firm’s investments span corporate and traded credit, real estate and mortgages, private equity and direct lending. Värde has offices in Minneapolis, New York, London, Singapore and other cities in Asia and Europe. For more information, please visit https://www.varde.com.
Värde Partners Agrees to Sell Stake in Lamda Malls for €109 Million
LONDON and ATHENS – Värde Partners, a leading global alternative investment firm, today announced it has agreed to sell its 31.7% stake in Lamda Malls S.A. to the company’s majority shareholder, Lamda Development, for €109 million. Lamda Malls owns two major shopping centers in Greece, the Golden Hall in Athens and Mediterranean Cosmos in Thessaloniki.
Värde Partners initially bought its stake in 2017 for €61.3 million. Since that time, the company has executed a series of value creation initiatives, including securing a long-term extension of Mediterranean Cosmos’ ground lease and completing a substantial redevelopment of Golden Hall’s western wing to add approximately 11,500 square meters of gross leasable area.
“Over the last five years we have worked closely with Lamda Development to successfully unlock value and help the assets realize their potential,” said Tony Iannazzo, Senior Managing Director at Värde Partners. “Despite the significant challenges shopping centers faced during the Covid pandemic the centers have continued to perform well, reflecting their enduring strength as prime shopping destinations.”
Both shopping centers remained close to full occupancy throughout the pandemic, with footfall and retail sales data rebounding strongly after Covid-driven lockdowns.
Golden Hall is the second largest shopping center in Greece, with a gross leasable area of 52,500 square meters, while Mediterranean Cosmos is the third largest with approximately 46,000 square meters.
The transaction is expected to close in the third quarter of 2022 and is subject to customary approvals.
About Värde Partners
Värde Partners is a leading global alternative investment firm with roots in credit and distressed. Founded in 1993, the firm has invested $90 billion since inception and manages over $13 billion on behalf of a global investor base. The firm’s investments span corporate and traded credit, real estate and mortgages, private equity and direct lending. Värde has offices in Minneapolis, New York, London, Singapore and other cities in Asia and Europe. For more information, please visit www.varde.com.
Värde Views: The Covid Echo Cycle
As the delayed impact of the unprecedented policy response to Covid plays out and concerns around stagflation take hold, exacerbated by the severe economic consequences of the war in Ukraine, Värde Partners’ CIOs Ilfryn Carstairs, Giuseppe Naglieri and Brad Bauer reflect on the emerging possibility of a rapid “Echo Cycle” and its implications for the credit opportunity set.
Download Värde Views here.
Atlanta’s Capital on Tap Secures $200 Million Funding Facility to Fuel Continued Growth
ATLANTA and LONDON – Capital on Tap has secured a $200m funding facility with HSBC and Värde Partners to support their continued US growth.
Capital on Tap launched in 2012 and has provided access to over $5 billion of funding for more than 125,000 small and medium-sized businesses across the U.K. and U.S. Recognized by Forbes as one of the U.K.’s fastest growing businesses, this new investment offers Capital on Tap the opportunity to bolster its impressive expansion in the U.S. The Capital on Tap Business Credit Card, issued by the lender WebBank offers leading employee spending controls, reporting, and rewards.
Capital on Tap made Atlanta its American home when it launched the Capital on Tap Business Credit Card in March, 2021, helping small and medium-sized businesses recover following the pandemic’s harsh economic downturn. With 50 employees currently sitting in the Atlanta office and actively recruiting more than a dozen more, Capital on Tap is poised to provide leadership and opportunity for Atlanta’s elite tech community.
Alan Hart, CFO, Capital on Tap, commented: “With the closing of this facility we are looking forward to expanding our ability to provide access to essential funding for small businesses across the United States. We are thrilled to be joined in this mission with Värde Partners as well as extending our already international relationship with HSBC.”
Aneek Mamik, Partner and Global Co-Head of Financial Services, Värde Partners said: “We are pleased to establish a partnership with Capital on Tap as they continue successfully expanding by making available faster and simpler working capital and payments tools to empower business owners. We see this as a good example of an emerging substantial investable opportunity set for us, providing capital solutions to digitally oriented non-bank companies that are providing access to financing the needs of businesses investing in their products and customers.”
About Capital on Tap
Capital on Tap is a privately held, financial technology company that provides access to funding to small and medium-sized businesses in the U.K and U.S. Founded in 2012, Capital on Tap has core offices in London, Atlanta, and Cardiff and has provided access to over $5 billion of funding to businesses. For more information visit www.capitalontap.com.
About Värde Partners
Värde Partners is a leading global alternative investment firm with roots in credit and distressed. Founded in 1993, the firm has invested $85 billion since inception and manages approximately $14 billion on behalf of a global investor base. The firm’s investments span corporate and traded credit, real estate and mortgages, private equity and direct lending. Värde has offices in Minneapolis, New York, London, Singapore and other cities in Asia and Europe. For more information, please visit https://www.varde.com.
About HSBC
HSBC serves customers worldwide from offices in 64 countries and territories in its geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. With assets of US$2.958 billion at 31 December 2021, HSBC is one of the world’s largest banking and financial services organizations.