NEW YORK–(BUSINESS WIRE)–Pretium and Värde Partners announced that they have entered into a
definitive agreement for Pretium to acquire Deephaven Mortgage LLC from
Founded in 2012, Deephaven is a leader in the Non-Qualified Mortgage
industry. The company partnered with Värde in 2014 to fund its growth
and expansion and, over the past 5 years, has invested in over $4
billion of Non-QM loans to become one of the leading issuers of Non-QM
Pretium is an alternative investment management firm focused on
residential real estate, mortgage credit and corporate credit with more
than $10 billion in assets under management. Pretium is the largest
private single-family rental owner and operator in the U.S., with over
32,000 homes across 15 high-growth markets. As the single-family rental
industry has evolved into a distinct, institutionalized real estate
asset class, Pretium has built an in-house real estate platform,
Progress Residential, which manages Pretium’s single-family rental homes
and has over 800 employees. In addition to Pretium’s single-family
rental platform, Pretium has invested in its mortgage credit strategy,
which has acquired over 31,000 loans with a collective unpaid principal
balance of $5.7 billion, and separately owns over 1,700 rental homes.
Donald Mullen, Founder and Chief Executive Officer of Pretium, said, “We
are excited to be acquiring one of the most established leaders in the
Non-QM market and we expect the business to benefit from working closely
with Pretium’s existing single-family rental and mortgage credit
businesses. Deephaven is a synergistic, natural extension of Pretium’s
existing strategies in single-family rentals and mortgage credit, within
our residential credit ecosystem.”
Värde is a leading investor in commercial and residential mortgages
including new originations and secondary investments in commercial and
residential loans and portfolios, securities, and servicing platforms.
Brian Schmidt, Partner and Head of Mortgages and North America Real
Estate at Värde, said, “Värde has deep experience in the U.S. mortgage
market, having invested across a range of mortgage assets and platforms
over the past 20+ years. Following a strong partnership with Deephaven,
we are pleased to see Deephaven joining the Pretium family of companies.
Our Financial Services team played an integral role in the value
creation and sale process, where Pretium distinguished itself as the
optimal partner to support Deephaven’s continued growth and success.”
Matt Nichols, Founder and CEO of Deephaven, added, “Deephaven was
founded to serve the millions of credit worthy borrowers, who would
otherwise have been excluded from the mortgage market. We are grateful
for Värde’s partnership in helping us build and establish a leadership
position in the Non-QM market. We are excited to join Pretium,
continuing a tradition of partnering with organizations that share our
vision for the mortgage market and commitment to responsible lending. We
look forward to our partnership and the opportunity it will afford us to
continue our leadership position in the high-growth Non-QM market.”
Terms of the transaction were not disclosed. The transaction is subject
to customary closing conditions and regulatory approvals, and is
expected to close in the second half of 2019.
Wells Fargo Securities served as financial advisor to Deephaven and
Värde. Mayer Brown LLP served as legal counsel to Deephaven and Värde.
Nomura Securities International, Inc. served as financial advisor to
Pretium. Sidley Austin LLP served as legal counsel to Pretium.
Pretium is a specialized alternative investment management firm focused
on residential real estate, mortgage finance and corporate credit.
Pretium was founded in 2012 to capitalize on secular investment and
lending opportunities arising as a result of structural changes,
disruptions, and inefficiencies within the economy, the residential
housing sector, and mortgage finance markets. Pretium has built an
integrated analytical and operational ecosystem within the U.S.
residential housing, mortgage, and corporate credit markets, and
believes that its insight and experience within these markets create a
strategic advantage over other investment managers. For more
information, please visit www.pretium.com.
ABOUT VÄRDE PARTNERS
Värde Partners is a $14 billion global alternative investment firm that
employs a value-based approach to investing across a broad array of
geographies, segments and asset types, including corporate credit,
financial services, real estate, mortgages, energy, real assets and
infrastructure. The firm sponsors and manages a family of private
investment funds with a global investor base that includes foundations
and endowments, pension plans, insurance companies, other institutional
investors and private clients. Now in its third decade, Värde employs
more than 300 people globally with regional headquarters in Minneapolis,
London and Singapore. For more information about Värde Partners, visit: www.varde.com.
Deephaven is a full service, multi-channel, long-term credit provider in
the Non-QM space, providing access to financing to millions of
underserved clients throughout the U.S. Deephaven was founded in 2012 to
help rebuild the non-government mortgage market. For more information,
please visit www.deephavenmortgage.com.
Pretium and Deephaven
Gasthalter & Co.