Pretium to Become Second-Largest Single-Family Rental Owner and Operator in the United States

Pretium 2020 Mid-Year Housing Outlook

Three-year Multi-state Agreement with SVN | SFR Capital Fund I, LP Brings Powerful Progress Residential® Platform to Purpose-Built Build-for-Rent Communities

Matt Cantor joins Pretium’s Distressed Credit business from Lehman Brothers.

Jennifer Strickland Joins as Co-Head of Business Development.

We believe a meaningful, multi-year increase in leveraged credit market distress has begun and expect defaults and losses to increase through 2021.

We believe the single-family rental sector is well positioned to capitalize on the structural imbalances in residential real estate.

Vertical Integration Key to Generating Long-Term Outsized Returns

Pretium announced it has successfully completed a transaction for its 2013 single-family rental (“SFR”) fund.

Over the past 10 years, U.S. households have significantly de-levered and de-risked their balance sheets, standing in sharp contrast to the incremental leverage and risk added by U.S. corporate borrowers and the federal government.

Post-crisis mortgage regulation created two classes of mortgage loans, “qualified mortgages” and “non-qualified mortgages,” based on certain loan characteristics including income verification and debt to income ratios.

Joe Davila named Chief Executive Officer and President

Pretium and Värde Partners today confirmed the completion of their previously announced agreement for Pretium to acquire Deephaven Mortgage LLC (“Deephaven”) from Värde Partners.

Home prices exhibit a stronger correlation to GDP growth and employment growth than interest rates due to the generally pro-cyclical nature of housing values.

Pretium and Värde Partners announced that they have entered into a definitive agreement for Pretium to acquire Deephaven Mortgage LLC from Värde Partners.

We expect structural imbalances in the U.S. housing market will continue, leading to further tightening of fundamentals and higher shelter costs.

Pretium is constructive on the near-term outlook for the U.S. economy, but risks to forward growth are mounting from late-cycle headwinds and potential downside risks from domestic and global policy.

In our view, the sharp change in homeowner affordability, coupled with strong housing demand and tight supply, is likely to drive significant rental demand from households priced out of homeownership due to cost or credit.

Pretium Partners, LLC (“Pretium”), an investment management firm focused on real estate, mortgage finance and corporate credit with over $10 billion in assets under management, today announced that it has entered into a definitive agreement to acquire Selene Holdings LLC (“Selene”) from funds managed by Oaktree Capital Management, L.P. (“Oaktree”) and Ranieri Partners LLC (“Ranieri”).

To compare credit cycles, we look at three critical factors including the length of a default cycle, its magnitude, and severity of loss.

The U.S. economy is performing well, supported by healthy job growth, corporate tax reform and elevated consumer and business confidence.

Total equity capital committed during the fundraising period exceeded $1 billion, including SFR Fund II and targeted commitments from separately managed accounts pursuing SFR strategies.

Progress Residential, a leading owner and operator of high-quality single-family homes for rent, formed by alternative investment manager Pretium Partners, LLC, today announced that Chaz Mueller has joined Progress Residential as Chief Executive Officer.

Last week, Pretium reached an agreement to assume management of two CLOs that are currently managed by NewMark Capital LLC. NewMark Capital Funding 2013-1 CLO Ltd and NewMark Capital Funding 2014-2 CLO Ltd currently hold approximately US$750 million in assets.

The compression in housing availability during a period of improving economic growth and sustained housing demand drove another year of rental rate and home price growth.