AlphaFlow Announces Strategic Investment From New York Mortgage Trust

Rhea-AI Summary

AlphaFlow, a technology platform for real estate debt investment, announced a minority equity investment from New York Mortgage Trust (NASDAQ: NYMT). This strategic move follows years of collaboration between AlphaFlow and NYMT, facilitating access to private real estate lenders. AlphaFlow aims to enhance its technology platform and launch a new financing platform this summer using the funds. The investment reflects confidence in AlphaFlow's ability to innovate within the real estate lending sector, and it joins contributions from notable investors like Point72 Ventures.

Positive

• Strategic minority equity investment from NYMT enhances AlphaFlow's capital base.
• Funds will be used to enhance core products and launch a new financing platform in summer.
• Investment reflects growing investor confidence in private lending market.

Negative

• None.

SAN FRANCISCO--(BUSINESS WIRE)-- AlphaFlow, a leading technology platform for institutional investment in real estate debt, today announced a minority equity investment from New York Mortgage Trust, Inc. (Nasdaq: NYMT).

AlphaFlow has worked directly with NYMT in recent years to provide NYMT with access to private real estate lenders across the country, particularly in the business purpose loan-space. The investment underscores the strategic focus of AlphaFlow’s leadership in delivering institutional-quality products to local lenders.

“While technology continues to drive efficiencies across a number of consumer categories, stubbornly high transaction costs persist in real estate and its derivative credit markets. At AlphaFlow, we are shrinking the timescale and exogenous factors that plague the asset backed credit markets. A deep understanding of the regulatory environment, incumbent habitual patterns, capital markets, and technological factors are required to simultaneously move all the pieces necessary for success,” says Noah Martin, President of AlphaFlow.

AlphaFlow has built a best-in-class technology platform to deliver institutional capital to non-bank lenders looking to provide financing for real estate investors. AlphaFlow currently plans to use the new funds to enhance its core product and launch a new financing platform this summer. NYMT is joined by other notable investors in this funding, including Steve Cohen’s Point72 Ventures, Rebel Fund, and Gaingels.

“We are thrilled that NYMT has chosen to invest in our platform as we embark on this next stage of growth for our company and the private lending market,” said Ray Sturm, co-founder and CEO of AlphaFlow.

About AlphaFlow

AlphaFlow is a technology platform that connects two sizable industries: real estate debt and the capital markets. The company is one of the nation’s leading providers of capital to the real estate private debt market that is focused on bridge and residential rental loans. The firm’s clients include a number of large institutional investors. AlphaFlow was established in 2015 and is headquartered in San Francisco, CA.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220322005328/en/

David Evie

212-381-0687

press@alphaflow.com

Source: AlphaFlow

FAQ

What recent investment did New York Mortgage Trust make?

New York Mortgage Trust (NASDAQ: NYMT) made a minority equity investment in AlphaFlow.

How will AlphaFlow use the investment from NYMT?

AlphaFlow plans to enhance its core product and launch a new financing platform this summer.

What is the focus of AlphaFlow's technology platform?

AlphaFlow connects real estate debt with capital markets, primarily targeting bridge and residential rental loans.

What other investors are involved in AlphaFlow's funding round?

Other notable investors include Point72 Ventures, Rebel Fund, and Gaingels.

What is the significance of NYMT's investment in AlphaFlow?

The investment signifies NYMT's support for AlphaFlow's growth and the potential of the private lending market.