400 Capital Management Completes $ 780 Million Residential NPL Securitizations
NEW YORK–(COMMERCIAL THREAD) – 400 Capital Management LLC (â400CMâ, â400 Capitalâ or the âFirmâ), an alternative credit asset manager specializing in structured credit with more than $ 5.2 billion in assets under management , announced the successful closing of two securitizations backed by $ 780.2 million of non-performing residential loans (âNPLsâ) this summer.
â400 Capital has a long history of investing in the residential credit markets. We are delighted to be able to work with our capital markets partners to open up alternative sources of funding for our investment vehicles, âsaid Chris Hentemann, Managing Partner and Chief Investment Officer. âTransactions help the 400 Capital platform become a regular issuer in the capital markets across a range of asset types. ”
The Company has entered into the securitizations in order to obtain term financing, eliminate mark-to-market risk, reduce costs and create evolving fixed rate financing. Given the size of the loan pool, 400CM decided to offer two transactions with similar characteristics.
510 Asset Backed (âFTABâ) 2021-NPL1 closed on June 29 and was backed by NPLs with an outstanding capital balance (âUPBâ) of $ 397.0 million. The tickets offered reached an 80% advance rate at UPB. The second transaction, FTAB 2021-NPL2, closed on August 11 and was backed at $ 383.2 million from NPL, with a UPB advance rate of 81%. The closings mark a significant milestone for the company and reflect the opportunities offered in this corner of the residential credit markets.
The agents responsible for the transactions are Rushmore Loan Management Services LLC and Columbus Real Estate Management LLC. The program administrator is Truman Capital Advisors, LP.
About 400 Capital Management LLC
400 Capital Management LLC is an employee-owned alternative credit asset manager led by four partners with over three decades of experience in trading, investing and managing risk in the credit and credit markets. securitized with an established investment history over several market cycles. Our management team has demonstrated its ability to generate returns, develop activities in the capital markets and systematically create innovative structures and securitization technologies used across the market. We provide access to a global platform of differentiated total return and absolute return alternative credit investment opportunities through multi-investor and separately managed account vehicles. We manage over $ 5.2 billion in client capital for global public and private pension plans, endowments, foundations, sovereign wealth funds, consultants, insurance groups, family offices and individuals wealthy qualified. Our team consists of 57 professionals with offices in New York and London.