Acquisition Strengthens CoreVest’s Leading Position in Commercial Lending Market
MILL VALLEY, Calif.–(BUSINESS WIRE)–Redwood Trust, Inc. (NYSE: RWT; “Redwood” or the “Company”), a leader in expanding access to housing for buyers and renters, today announced that it has completed the previously announced acquisition of Riverbend Funding, LLC and its subsidiaries (“Riverbend”), a premier private mortgage lender to transitional residential and commercial real estate investors, in an all-cash transaction. The acquisition was originally announced on April 28, 2022.
The addition of Riverbend complements Redwood’s existing mortgage banking platform, CoreVest American Finance Lender, LLC (“CoreVest”), enhancing CoreVest’s product line, geographic and production footprint and customer base. In particular, the Riverbend platform adds the creation and distribution of unique asset bridges to CoreVest’s existing product offering. The acquisition combines two companies that provide exceptional products and quality execution for Partners. Riverbend employees and operations will be integrated into CoreVest. Emilian Halloran and Sean Robbins, co-founders of Riverbend, will continue to lead the company post-closing as managing directors overseeing the single-asset bridge product.
“We are thrilled to announce the closing of this acquisition and officially welcome the Riverbend team,” said Christopher Abate, Redwood’s Chief Executive Officer. “We have long believed in the high-quality opportunity that exists for Redwood in the commercial lending market and this acquisition further underscores our deep commitment to developing and operating a best-in-class commercial lending platform. . As we described when announcing the acquisition of Riverbend, we also continue to believe, particularly in this higher rate environment, that our investment portfolio and operating income will further benefit from the proceeds. bridge and revenue based on Riverbend fees.
Beth O’Brien, CEO of CoreVest, added, “We continue to be very excited about the opportunity of this platform within our existing CoreVest business. We look forward to continuing to provide high quality execution to our new and existing customers and to growing our market share through our broad product line.
“As we enter this next stage of growth, we are thrilled to partner with the dedicated teams at Redwood and CoreVest,” said Emilian Halloran, co-founder of Riverbend. “The strong capital base, efficient operating platform, deep customer network and extensive product set will enable us to expand our origination and funding efforts.”
JMP Securities, A Citizens Company, served as exclusive financial advisor to Redwood on the transaction. Riverbend was advised by Piper Sandler. Mayer Brown LLP acted as legal counsel to Redwood.
About Redwood Trust
Redwood Trust, Inc. (NYSE: RWT) is a specialty finance company focused on several distinct areas of mortgage lending. Our operating platforms occupy a unique position in the housing finance value chain, providing liquidity to growing segments of the US real estate market that are not well served by government programs. We offer personalized mortgage investments to a diverse range of investors, thanks to our best-in-class securitization platforms; full loan distribution activities; and our publicly traded shares. Our aggregation, origination and investment businesses have evolved to incorporate a diverse mix of residential, commercial and multi-family 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-driven scale. We operate through three segments: Residential Mortgage Banking, Commercial Mortgage Banking and Investment Portfolio. Additionally, through RWT Horizons™, our venture capital investment initiative, we invest in early-stage companies strategically aligned with our businesses in the lending, real estate and fintech sectors to drive growth. innovations on our residential and commercial lending platforms. Since our IPO in 1994, we’ve managed our business through multiple cycles, built a track record of innovation, and established an industry-leading reputation for service and a common-sense approach to investing in credit. 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.
CoreVest, a division of Redwood Trust, Inc., is the leading lender to residential real estate investors nationwide. It offers long-term loans for rental property portfolios as well as short-term bridge loans, investment lines of credit and building programs for rental. With over $16 billion in loans closed and over 100,000 units financed, CoreVest offers attractive rates, fast turnaround times and closing certainty. The company works directly with borrowers and brokers. For more information, visit www.corevestfinance.com.
Riverbend Lending is an innovative private lending partner with a national footprint and local expertise. The company is led by a management team with over sixty years of experience in real estate investments. Our management team has a proven track record with a combined funded portfolio of over $1.5 billion in single-family and multi-family loans across the United States.
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements relating to Redwood’s expectations regarding the closing of its acquisition of Riverbend, the integration of Riverbend into Redwood and CoreVest businesses, and the subsequent performance of the combined companies and the credit markets generally. Forward-looking statements involve numerous risks and uncertainties. Our actual results may differ from our beliefs, expectations, estimates and projections and, accordingly, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements are not historical in nature and can be identified by words such as “anticipate”, “estimate”, “will”, “should”, “expect”, “believe”, “intend”. de”, “seek”, “plan” and similar expressions or their negative forms, or by references to strategy, plans or intentions. These forward-looking statements are subject to risks and uncertainties, including, among others, those described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 under the heading “Risk Factors”. Additional risks, uncertainties and factors that could cause actual results to differ materially from those projected may be described from time to time in our reports filed with the Securities and Exchange Commission, including reports on forms 10-Q and 8-K. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Redwood Investor Relations
SVP, Head of Investor Relations
Sard Verbinnen & Co