Redwood Trust Inc., based in Mill Valley, announced Monday the launch of a joint venture with funds managed by Oaktree Capital Management, L.P. to invest in business purpose bridge loans originated by CoreVest American Finance Lender, a division of Redwood. The JV has an equity commitment potential to finance more than $1 billion of newly-originated bridge loans; 80% funded by Oaktree and 20% funded by Redwood.
Dash Robinson, President of Redwood commented on the opportunity for their bridge lending platform as other lenders reduce their footprint: “The JV allows us to efficiently leverage our own investment capital and serve our customers in expanded ways.”
The joint venture is designed to purchase various types of bridge loans that CoreVest originates such as multifamily bridges, build-for-rents and single asset bridges; while also investing opportunistically from third parties sourced through loan facilities that may be refinanced through securitizations or longer term credit facilities.
