eRESI Secures Additional Investment from KKR

Rhea-AI Summary

eRESI Capital has secured additional investment from KKR insurance accounts, building on their initial 2021 investment. The company, founded in 2019, has provided over $10 billion in residential whole loan funding through its mortgage funding platform. The new capital will support eRESI's expansion of funding capabilities and operational capacity to increase market share. KKR's High-Grade Asset-Based Finance strategy, which manages approximately $66 billion in assets globally, focuses on investment grade financings and whole loan purchases.

Positive

• Secured additional investment from KKR insurance accounts
• Achieved $10 billion in residential whole loan funding
• Expanding funding capabilities and operational capacity
• Backed by KKR's $66 billion Asset-Based Finance platform

Negative

• None.

Insights

Financial Analyst

KKR's expanded investment in eRESI Capital represents a strategic move in the residential mortgage market. The platform's success in deploying over $10 billion in whole loan funding demonstrates significant market traction. KKR's High-Grade Asset-Based Finance strategy, managing $66 billion in assets, shows strong commitment to this sector. This investment strengthens KKR's position in the mortgage market while diversifying revenue streams through investment-grade financing. The deal should generate steady returns for KKR's insurance accounts while maintaining a conservative risk profile. The expansion of eRESI's funding capabilities could lead to increased market share and revenue opportunities for KKR in the growing mortgage financing sector.

NEW YORK & CHARLOTTE, N.C.--(BUSINESS WIRE)-- eRESI Capital, LLC (“eRESI” or the “Company”), an innovative mortgage funding platform that offers comprehensive private capital solutions to the residential mortgage market, today announced that it has secured a new investment from insurance accounts managed by KKR, a leading global investment firm. These insurance accounts initially invested in eRESI in 2021. The additional capital is expected to help the Company continue to reach new origination milestones and drive further innovation, excellence, and value for its customers.

Founded in 2019, eRESI offers customized products and liquidity solutions to hundreds of mortgage banking partners. With the support of KKR’s High-Grade Asset-Based Finance (ABF) strategy, eRESI has provided over $10 billion in residential whole loan funding. The new commitment is expected to help broaden eRESI’s funding capabilities and operational capacity to capture market share and further increase liquidity to its customers.

"With KKR’s support, we have achieved remarkable goals, and we look forward to accomplishing even more in the future,” said Gregory Tsang, Chief Executive Officer and Tim Wang, President of eRESI. “Our best-in-class platform empowers us to deliver exceptional products and services to our customers and partners and this commitment will continue to drive our growth and strengthen our market-leading position."

“We are pleased to support eRESI’s growth through our High-Grade Asset-Based Finance strategy and look forward to deepening our commitment to the company, which plays a key role in expanding access to financing options in the mortgage market” said Avi Korn and Chris Mellia, global co-heads of Asset-Based Finance at KKR.

KKR’s high grade ABF strategy focuses on investment grade and investment grade-like financings and whole loan purchases. Through access to proprietary sourcing and privately negotiated structures, this strategy can provide attractive excess returns over corporate investment grade exposure with similar risk. KKR’s ABF platform began investing in 2016 and now has approximately $66 billion in ABF assets under management globally across its High-Grade ABF and Opportunistic ABF strategies.

About eRESI

eRESI’s comprehensive private capital access and technology platform is empowering mortgage companies with better liquidity and more efficiency. eRESI continues to expand its Non-Agency market share through enhanced transparency, innovative process, and best-in-class client service. The ability to provide a fully integrated suite of solutions and expansive executions to origination partners and capital markets helps support and benefit the U.S. housing market. Based in Charlotte, NC and Pasadena, CA, eRESI has completed billions in Non-Agency transactions serving a national network of clients.

About KKR

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241104047364/en/

For eRESI:

Semone Aye

1-855-208-2546

semone.aye@eresimortgage.com



For KKR:

Julia Kosygina or Lauren McCranie

212-750-8300

media@kkr.com

Source: eRESI

FAQ

How much has eRESI provided in residential whole loan funding with KKR's support?

eRESI has provided over $10 billion in residential whole loan funding with KKR's support through its High-Grade Asset-Based Finance strategy.

When did KKR first invest in eRESI?

KKR insurance accounts initially invested in eRESI in 2021.

What is the size of KKR's Asset-Based Finance platform?

KKR's Asset-Based Finance platform has approximately $66 billion in assets under management globally across its High-Grade ABF and Opportunistic ABF strategies.

When was eRESI Capital founded?

eRESI Capital was founded in 2019.