Move to grow product suite and broaden its network
MAXEX has announced closing a “strategic” equity investment led by South Street and Atlas Merchant Capital.
The non-agency loan trading platform did not disclose the financial terms of the deal, though MAXEX said existing investors JPMorgan and Moore Asset Backed Fund participated in the investment. South Street will also inject capital into MAXEX’s mortgage clearinghouse facility to accelerate market adoption of the platform while expanding access to MAXEX and South Street’s products and services.
“As our exchange has grown, our value proposition and the significant operational efficiencies we provide have become increasingly clear to the industry,” MAXEX chairman and CEO Tom Pearce said in the company’s press release. “This partnership enables us to further accelerate our growth, expand our product suite and broaden our network.”
“Recent market volatility emphasized the need for fundamental change in the secondary mortgage market as lenders and investors struggled to adapt to rapidly rising rates, liquidity shortages and the need to operate with more nimble, flexible infrastructure,” added Jim Tabacchi, president and CEO of South Street. “MAXEX expands access to a broad range of non-agency and agency-eligible mortgage loan programs. This partnership enhances our offering and TBA pipeline hedging platform by giving clients access to MAXEX’s loan trading exchange.”
“South Street and MAXEX have established themselves as pioneers of modern infrastructure that is critical to mortgage trading and liquidity,” said David Schamis, chief information officer of Atlas Merchant Capital. “This partnership is core to our strategy of investing in and growing financial services companies that benefit from our long-term perspective, partnership approach and operating expertise.”
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