Global Atlantic acquires majority stake in eRESI Mortgage

Rhea-AI Summary

eRESI Mortgage, LLC, a private capital solutions provider for the residential mortgage market, has secured a strategic investment from subsidiaries of Global Atlantic Financial Group, becoming its majority owner. This transition will facilitate the establishment of eRESI Capital LLC, led by Gregory Tsang and Tim Wang. Since its inception in 2019, eRESI has been growing its presence in the Non-Agency loan sector, promising enhanced credit products and services to financial institutions. The collaboration aims to optimize growth and efficiency in mortgage funding.

Positive

• Strategic investment by Global Atlantic enhances eRESI's capital capabilities.
• Formation of eRESI Capital LLC is set to broaden product and service offerings.
• eRESI's market share in Non-Agency loans is expected to expand further.

Negative

• None.

CHARLOTTE, N.C.--(BUSINESS WIRE)-- eRESI Mortgage, LLC (“eRESI”), an innovative mortgage funding platform that offers comprehensive private capital solutions to the residential mortgage market, today announced that subsidiaries of The Global Atlantic Financial Group LLC (“Global Atlantic”), a leading life and annuity insurance company, have made a strategic investment and capital commitment to become its majority owner. eRESI Mortgage will continue to operate under a newly formed entity, eRESI Capital LLC, being led by Gregory Tsang (CEO) and Tim Wang (President).

Founded in 2019, eRESI is a leading capital provider in the Non-Agency residential whole loan market. The company provides a wide range of customized products and liquidity solutions to its national network of mortgage banking partners. Driven by strong sponsorships and an experienced management team, eRESI has consistently delivered strong client-focused services and helped its business partners grow through different market cycles. eRESI is rapidly expanding its capabilities and capturing market shares in the Non-QM mortgage sector. The new strategic transaction will enable eRESI to further offer and scale a wide spectrum of credit products and services to financial institutions.

“We are excited to have Global Atlantic as a long-term partner, who shares the same vision and goals,” said Gregory Tsang, Chief Executive Officer of eRESI. “This strategic transaction will accelerate our growth and broaden our capabilities of providing capital to the residential mortgage market, which ultimately will benefit individual homeowners. Our unique platform of deep capital markets expertise, credit underwriting, and efficient technology combined with our new partnership will significantly help our clients’ bottom line.”

Anup Agarwal, Chief Investment Officer of Global Atlantic, added, “We are pleased to join forces with eRESI. The Non-Agency loan business is an important part of Global Atlantic’s portfolio. We have been very impressed with the eRESI team and look forward to growing together.”

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 Global Atlantic

Global Atlantic Financial Group is a leader in the U.S. life insurance and annuity industry, serving the needs of individuals and institutions. With differentiated investment and risk management capabilities, deep client relationships, and a strong financial foundation, the company has established a track record of delivering proven, value-added solutions and long-term growth. Global Atlantic is a majority-owned subsidiary of KKR, a leading global investment firm that offers alternative asset management across multiple strategies and capital markets solutions. KKR’s parent company is KKR & Co. Inc. (NYSE: KKR).

View source version on businesswire.com: https://www.businesswire.com/news/home/20211012006151/en/

ICR Inc.

GlobalAtlantic@icrinc.com

(203) 682-8268

Source: Global Atlantic Financial Group

FAQ

What is the significance of Global Atlantic's investment in eRESI?

Global Atlantic's investment allows eRESI to become a majority-owned company, enhancing its capital capabilities and expanding its product offerings.

Who will lead the newly formed eRESI Capital LLC?

Gregory Tsang and Tim Wang will lead the new entity, eRESI Capital LLC.

How does this investment impact the residential mortgage market?

The investment aims to enhance the liquidity and efficiency of capital solutions available in the residential mortgage market.

When was eRESI founded, and what is its main focus?

eRESI was founded in 2019 and primarily focuses on providing capital solutions in the Non-Agency residential whole loan market.

What are the expected benefits of the partnership between eRESI and Global Atlantic?

The partnership is expected to drive growth, enhance service offerings, and ultimately benefit homeowners through improved capital solutions.