On Tuesday, Wells Fargo announced that it has reached an agreement to sell its non-agency third-party servicing segment of its commercial mortgage servicing (CMS) business to Trimont. The terms and size of the transaction were not disclosed. As a result, Atlanta-based Trimont will become the largest commercial real estate loan servicer in the U.S., with a portfolio worth $640 billion.
According to Bill Sexton, CEO of Trimont, this deal brings together two highly respected companies in their respective areas and allows them to offer a comprehensive service offering for the increasingly sophisticated CRE lending market.
Kara McShane, EVP at Wells Fargo and head of Wells Fargo Commercial Real Estate stated that this sale aligns with their strategy of focusing on core businesses for their consumer and corporate clients. She also reassured clients that they remain committed to providing top-notch services through their market-leading Commercial Real Estate business.
Funding for this transaction will be provided by Värde Partners – a global alternative investment firm who has owned Trimont through certain funds since 2015.
Wells Fargo Securities LLC acted as exclusive financial advisor while Wachtell Lipton Rosen & Katz served as legal advisor for Wells Fargo. For Trimont and Värde Partners J.P Morgan Securities acted as financial advisors while Goldman Sachs provided additional advisory services; Kirkland & Ellis LLP , Cadwalader Wickersham & Taft LLP ,and Trilegal served as legal advisors .
The closing is expected early next year subjecting customary closing conditions . It should be noted however that despite selling off its non-agency CMS segment,Wells Faro remains dedicated towards serving agency/GSE loans along with loans held on its balance sheet.
