Deal will strengthen the acquired company's services and accelerate its growth
Pretium, a specialized investment management firm with approximately $30 billion in assets, has revealed that it has purchased fix-and-flip lender Anchor Loans.
Terms of the transaction were not disclosed, but Anchor Loans CEO Andrew Pollock said that Pretium's resources, operational expertise, and complementary businesses "will naturally accelerate our growth and strengthen the services we provide to our clients."
"This transaction is a unique opportunity to partner with an organization that shares our passion about the importance of supporting our communities with great homes and investments," Pollock continued. "At the same time, we remain well-positioned to drive innovation in our lending programs and position our pioneering business for continued long-term success."
Anchor Loans, which offers bridge and construction loans to real estate investors, has originated more than $10 billion in loans since its founding in 1998. The company said that 95% of its business comes from experienced investor clients who have completed more than 40 projects.
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Pollock and the current management team will continue to lead Anchor, which will retain its headquarters in Thousand Oaks, Calif.
American Equity Investment Life Insurance Company provided financing for the acquisition as part of an expansion of its strategic partnership with Pretium. Concurrent with closing, American Equity acquired about $1 billion of loans originated by Anchor Loans.
"As we continue to experience a dynamic housing market defined by a growing shortage of total housing supply and an insufficient stock of move-in ready homes, we are seeing a significant increase in the investments required to upgrade today's aging homes and modernize our infrastructure," said Don Mullen, CEO and founder of Pretium.
"Pretium was formed with the goal to solve the shortage of housing in the US and, today, is contributing to our local communities by creating attractive rental homes, offering capital solutions to homebuyers, and now providing loans for residential real estate investors and entrepreneurs. Andrew Pollock and the Anchor Loans team are leaders in this industry, and we look forward to partnering with them to continue providing private capital solutions to the US housing market."
