RWT Horizons Announces Q1’22 Investment Activity

Rhea-AI Summary

Redwood Trust (NYSE: RWT) announced five new investments by its venture arm, RWT Horizons, in Q1 2022, focusing on financial and real estate technology. Notable investments include:

• Dwellsy: Online rental platform with 13 million listings.
• FutureProof Technologies: Insurtech company using AI for climate risk analysis.
• LeaseLock: Security deposit replacement provider for housing.
• Oasis Pro Markets: Platform for trading digital securities.
• Vesta Equity: Marketplace for tokenized home equity investments.

These strategic investments aim to enhance Redwood’s operational efficiency and housing accessibility.

Positive

• Made five new strategic investments in early to mid-stage tech companies.
• Investments target high-growth sectors related to housing and financial technology.
• Dwellsy investment is RWT Horizons' second, highlighting confidence in the platform.
• FutureProof aims to enhance ESG disclosure and improve climate risk coverage.
• LeaseLock provides innovative housing solutions, aligning with Redwood's mission.

Negative

• None.

MILL VALLEY, Calif.--(BUSINESS WIRE)-- RWT Horizons, the venture investment arm of Redwood Trust, Inc. (NYSE: RWT) (“Redwood”), today announced five new investments completed during the first quarter of 2022. RWT Horizons targets early and mid-stage companies that are transforming financial and real estate technology and that have the potential to enhance scale and efficiency of Redwood’s businesses. Since inception RWT Horizons has made 21 investments in 18 companies.

• Dwellsy, a leading online home rental platform with 13 million listings where renters can find houses, townhomes, condos, and apartments. This investment represents RWT Horizon’s second investment in Dwellsy.
• FutureProof Technologies (“FutureProof”), an insurtech company that quantifies climate and weather risk through AI-powered projections of asset-level losses from hurricane wind and flood. FutureProof’s insurance underwriting will help close the coverage gap and support efforts to enhance Environmental, Social and Governance (“ESG”) disclosure and unlock investment in climate adaptation and resiliency.
• LeaseLock, an insurtech platform that provides a security deposit replacement solution for tenants and landlords. LeaseLock offers an innovative, low-cost solution for tenants to cover their security deposit without the upfront cash outlay, in keeping with Redwood’s efforts in helping to make quality housing accessible to all Americans.
• Oasis Pro Markets (“Oasis Pro”), a US-regulated alternative trading system authorized to allow its subscribers to trade digital (blockchain) securities and make payment in digital cash (stable coin). The Oasis Pro platform can be used to potentially distribute both residential and business purpose loans and securities, adding an incremental distribution channel for both of Redwood’s operating platforms.
• Vesta Equity, a marketplace for tokenized home equity investments using blockchain. As home equity continues to grow to record levels, Vesta Equity provides a solution to unlocking home equity by connecting homeowners to investors and ultimately enabling homeowners to sell a portion of their home while retaining their residency.

Both Vesta Equity and Dwellsy investments were made through RWT Horizon’s partnership with Frontiers Capital.

“During the first quarter of 2022, RWT Horizons made several exciting new investments to complement our existing portfolio,” said Ryan McBride, Chief Investment Officer of RWT Horizons. “These innovative companies have a direct strategic nexus to Redwood’s operating businesses and also align with Redwood’s corporate mission of supporting housing accessibility. We look forward to working with these incredible management teams as we continue to drive the evolution of housing and accelerate strategic efficiencies for our business.”

About Redwood Trust

Redwood Trust, Inc. (NYSE: RWT) is a specialty finance company focused on several distinct areas of housing credit. Our operating platforms occupy a unique position in the housing finance value chain, providing liquidity to growing segments of the U.S. housing market not well served by government programs. We deliver customized housing credit investments to a diverse mix of investors, through our best-in-class securitization platforms; whole-loan distribution activities; and our publicly traded shares. Our aggregation, origination and investment activities have evolved to incorporate a diverse mix of residential, business purpose and multifamily assets. Our goal is to provide attractive returns to shareholders through a stable and growing stream of earnings and dividends, capital appreciation, and a commitment to technological innovation that facilitates risk-minded scale. We operate our business in three segments: Residential Mortgage Banking, Business Purpose Mortgage Banking and Investment Portfolio. Additionally, through RWT Horizons™, our venture investing initiative, we invest in early-stage companies strategically aligned with our business across the lending, real estate, and financial technology sectors to drive innovations across our residential and business-purpose lending platforms. Since going public in 1994, we have managed our business through several cycles, built a track record of innovation, and established a best-in-class reputation for service and a common-sense approach to credit investing. Redwood Trust is internally managed and structured as a real estate investment trust ("REIT") for tax purposes. For more information about Redwood, please visit our website at www.redwoodtrust.com or connect with us on LinkedIn, Twitter, or Facebook.

About RWT Horizons

RWT Horizons is Redwood's venture investment arm focused on early and mid-stage companies driving innovation in financial and real estate technology, digital infrastructure, and other related areas of focus. Investments made through RWT Horizons are designed to support companies whose technologies are accretive to Redwood's broader operations, including its residential and business-purpose lending platforms.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220419005712/en/

Kaitlyn Mauritz

SVP, Head of Investor Relations

Phone: 866-269-4976

Email: investorrelations@redwoodtrust.com

Source: RWT Horizons

FAQ

What investments did Redwood Trust (RWT) make in Q1 2022?

Redwood Trust (NYSE: RWT) made five new investments in tech companies focusing on housing and finance, including Dwellsy, FutureProof Technologies, LeaseLock, Oasis Pro Markets, and Vesta Equity.

How does RWT Horizons support Redwood Trust's mission?

RWT Horizons invests in companies that enhance the scalability and efficiency of Redwood's operations, particularly in housing accessibility and financial technology.

Why is Dwellsy significant for Redwood Trust's portfolio?

Dwellsy, an online rental platform, is significant as it represents RWT Horizons' second investment in the company, reflecting Redwood's strategy to bolster housing accessibility.

What is the focus of FutureProof Technologies, one of RWT's investments?

FutureProof Technologies focuses on quantifying climate risks using AI, promoting better insurance coverage related to climate events.

What type of company is LeaseLock, another RWT investment?

LeaseLock is an insurtech platform offering security deposit replacements, making housing more accessible by reducing upfront costs for tenants.