Firms create joint venture focused on non-QM mortgages
AmWest Funding and funds managed by Ares Management Corporation have formed a joint venture focused on purchasing and investing in non-qualified mortgage (non-QM) loans originated and serviced by AmWest.
Under the agreement, Ares will provide 90% of the joint venture's capital, with AmWest contributing the remaining 10%. The partnership seeks to capitalize on the current market environment and drive further growth for AmWest.
"We are pleased to enter into this partnership with Ares, which will allow us to grow our business and further capitalize on the current market environment," said William Park, founder and chairman of AmWest. "We pride ourselves in the trusted brand that we have built and look forward to continuing to support mortgage brokers and homebuyers with exceptional products and service."
"Our partnership with Ares is a testament to the confidence we have in our operating platform and our strategy of building and developing Park Capital Management," AmWest chief executive officer Kenneth Jo said in a media release. "We look forward to working with the Ares team to source and securitize attractive residential mortgage investments together in the years ahead."
AmWest has securitized approximately $3.1 billion in mortgage loans over the past three years. The firm plans to securitize mortgage loans using the HOMES and PRKCM shelves.
Ares Alternative Credit manages $33.9 billion in assets as of December 2023, and invests across the capital structure in various sectors including specialty finance, structured products, and other asset-focused investments.
"This partnership furthers Ares' evolution as an important player in the residential mortgage space," said Kevin Alexander, partner in the Ares Credit Group "AmWest's ability to originate and service superior mortgage assets is a perfect fit for Ares' Alternative Credit's mandate."
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"As a platform that is invested across the mortgage space from multiple pockets of capital, Ares was able to provide a solution that fit AmWest to grow their business," said Michael Flynn, Managing director in the Ares Credit Group. "Both Ares and AmWest are focused on building this partnership to source assets with strong credit quality that will ultimately lead to successful securitization platforms."
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