Pretium Acquires Anchor Loans to Deliver Enhanced Capital Solutions for Homebuyers

PRESS RELEASE

Pretium Acquires Anchor Loans to Deliver Enhanced Capital Solutions for Homebuyers

November 2, 2021

Furthers Pretium's Mission to Provide Solutions for U.S. Housing Market Through Diversified Platform.

Meets Growing Residential Real Estate Needs by Providing Loans to Upgrade Aging Homes.

Positions Anchor to Drive Innovation and Enhance Service Capabilities

NEW YORKNov. 2, 2021 /PRNewswire/ — Pretium, a specialized investment management firm with approximately $30 billion in assets, today announced that it has acquired Anchor Loans LP, the nation’s leading provider of financing to residential real estate investors and entrepreneurs, from affiliates of Wafra Capital Partners Inc. and other owners. Terms of the transaction were not disclosed.

Founded in 1998, Anchor Loans was the first institutional lending platform built to serve the diverse financing needs of professional residential real-estate investors. Over the last two decades, Anchor Loans has grown to become the nation’s leading capital provider to experienced residential real-estate sponsors through its bridge and construction products. Anchor Loans serves a professional customer base where 95% of loans are made to established borrowers who have completed more than 40 projects. To date, Anchor Loans has originated more than $10 billion in loans – more than any other lender of its type.

“As we continue to experience a dynamic housing market defined by a growing shortage of total housing supply and an insufficient stock of move-in ready homes, we are seeing a significant increase in the investments required to upgrade today’s aging homes and modernize our infrastructure,” said Don Mullen, CEO and Founder of Pretium. “Pretium was formed with the goal to solve the shortage of housing in the U.S. and, today, is contributing to our local communities by creating attractive rental homes, offering capital solutions to homebuyers, and now providing loans for residential real-estate investors and entrepreneurs. Andrew Pollock and the Anchor Loans team are leaders in this industry, and we look forward to partnering with them to continue providing private capital solutions to the U.S. housing market.”

“This transaction is a unique opportunity to partner with an organization that shares our passion about the importance of supporting our communities with great homes and investments,” said Andrew Pollock, Chief Executive Officer at Anchor Loans. “With Pretium’s resources, operational expertise, and complementary businesses, we see immediate opportunities for cross collaboration that will naturally accelerate our growth and strengthen the services we provide to our clients. At the same time, we remain well positioned to drive innovation in our lending programs and position our pioneering business for continued long-term success.”

Following the close of the transaction, Anchor Loans will continue to be led by Chief Executive Officer Andrew Pollock and the current management team and retain its headquarters in Thousand Oaks, California.

American Equity Investment Life Insurance Company provided financing for the acquisition as part of an expansion of its strategic partnership with Pretium. In addition, American Equity acquired approximately $1 billion of loans originated by Anchor Loans concurrent with closing. 

Nomura Securities International, Inc. acted as financial advisor and Sidley Austin LLP acted as legal advisor to Pretium. Piper Sandler & Co. acted as financial advisor and O’Melveny & Myers acted as legal advisor to Anchor Loans.

About Pretium

Pretium is a specialized alternative investment management firm focused on U.S. residential real estate, residential credit, and corporate credit. Pretium was founded in 2012 to capitalize on secular investment and lending opportunities arising as a result of structural changes, disruptions, and inefficiencies within the economy. Pretium has built an integrated analytical and operational ecosystem within the U.S. housing, residential credit, and corporate credit markets, and believes that its insight and experience within these markets create a strategic advantage over other investment managers. Pretium’s platform has approximately $30 billion of assets under management as of October 31, 2021 and employs approximately 3,000 people across 30 offices. Please visit www.pretium.com for additional information.

About Anchor Loans

Anchor Loans is the nation’s leading lender to residential real estate investors and entrepreneurs, with a total funding of more than $10 billion since 1998. With advanced, intuitive and innovative technology, Anchor provides fast, reliable funding and an exceptional customer experience—forging long-term client relationships and helping customers achieve and exceed their business goals. More than 85% of Anchor’s borrowers are repeat customers, over 70% of the Company’s new borrowers were referred by an existing customer, and approximately 95% of loans go to established borrowers who have completed more than 40 projects. Ranked for two consecutive years on the Inc. 5000 list of the fastest-growing privately held small companies in the U.S. https://www.anchorloans.com.

Contacts

Pretium

Jon Keehner / Erik Carlson / Lyle Weston
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449
Media-SFR@pretium.com 

Anchor Loans

Bill Campbell
Campbell Lewis Communications
212-995-8057
bill@campbelllewis.com

The Wall Street Journal: Rental-Home Owner Pretium Buys Home-Flipping Lender for $1.5 Billion

Investment firm Pretium Partners is acquiring home-flipping lender Anchor Loans for $1.5 billion, the latest sign that big investors believe the record-setting housing boom has more room to run.

The deal gives Pretium, one of the country’s largest owners and managers of rental houses, a large new revenue stream in the hot business of turning homes into investment properties. Soaring home prices have been compelling more families to turn to rental homes to live in prime suburban neighborhoods.

The sellers were a group of investors that included Wafra Capital Partners Inc., an affiliate of a Kuwait government pension fund, which had acquired a controlling stake in the company in 2019.

Thousand Oaks, Calif.-based Anchor has originated more than $10 billion in debt, specializing in small loans to professional home-flippers as well as rental landlords. According to the company, 95% of its loans go to borrowers that have completed at least 40 projects. Flip loans are generally short-term—about one-year and high-interest.

In bringing Anchor in under its roof, Pretium is betting on continued business from investors looking to buy and renovate houses. The company points to both a shortage of homes and the needs of the country’s roughly 64 million existing homes built before 1990, many of which require updates and repairs to remain viable long-term investments.

“It’s not only that we don’t have enough houses, it’s that we don’t have the right houses,” said Ted Huffman, senior managing director and head of strategic development at Pretium.

Anchor and its large loan book will provide Pretium with possible leads for its rental-property management operation, Progress Residential, and a potential pipeline of newly renovated homes that Pretium might want to purchase, Mr. Huffman said.

The single family-rental market has had a banner year. Rents in the sector reached record high growth in July, rising 8.5% annually, according to housing data firm CoreLogic. Institutional investment in the single-family rental sector is also soaring. Large firms such as Blackstone Group Inc. and Invesco Real Estate recently have made multibillion-dollar commitments, while big home builders are becoming more focused on building homes for rent.

In the second quarter, one in four home buyers was an investor in hot markets such as Phoenix and Miami, according to real-estate company Redfin. Nationally, some 80,000 home sales that quarter were flips, meaning they were sold one year or less after purchase, the most flips since 2006, according to Attom Data Solutions. Home sale prices rose nearly 23% during the second quarter compared with the previous year, according to the National Association of Realtors.

Pretium owns about 70,000 single-family rental homes and in September launched a joint venture to invest $1 billion in the construction of new homes built to rent. Previous to that, Pretium and other investors took publicly traded landlord Front Yard Residential private in a $2.4 billion deal. Pretium has roughly $30 billion in total assets under management, the company said.

Appeared in the November 3, 2021, print edition as ‘Pretium Acquires Anchor Loans.’



Sarah Kong

Managing Director, Pretium

 

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