Firm expands into business purpose lending market
Private equity giant Bain Capital has secured a controlling stake in Archwest Capital, a residential and commercial fix-and-flip lender.
While the exact purchase price remains confidential, Bain Capital said it has agreed to acquire a controlling stake in the California-based lender. Archwest CEO Shawn Miller will retain a “significant minority stake” in the company.
Archwest Capital specializes in business purpose loans, such as fix-and-flip, bridge, construction, rental, and multifamily loans. Since 2022, Archwest has originated over $700 million in business purpose assets across nearly 1,200 units nationwide.
“Today more than ever, real estate investors and developers need reliable lending partners who are agile and can provide certainty of execution to solve their complex financing needs,” Miller said in the release. “Bain Capital shares our vision for building Archwest into the leader for US business purpose lending, and we look forward to leveraging their resources and operational capabilities to further enhance our innovative product suite and strengthen our value-added proposition to our borrowers and broker partners.”
The acquisition is part of Bain Capital’s broader strategy to diversify its investment portfolio and capitalize on opportunities in the housing market. The firm, which manages approximately $185 billion in assets, has expanded into various sectors, including private equity, credit, public equity, venture capital, real estate, life sciences, and insurance.
“We are pleased to partner with Shawn and the Archwest team to deliver dynamic financing solutions to home builders, renovators and landlords who are expanding and improving the critically undersupplied US housing stock,” said David DesPrez, a Managing Director at Bain Capital. “We believe that combining the Archwest team’s deep lending and operational capabilities with a bespoke capital solution from Bain Capital sets Archwest up to be the leader in the non-owner occupied residential lending space.”
Legal advisor Irell & Manella LLP represented Archwest in the transaction, while Piper Sandler Companies acted as financial advisor and Dechert LLP served as legal advisor to Bain Capital.
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