New York – October 29, 2020 – Pretium today announced it entered into an expanded strategic partnership with American Equity Investment Life Insurance Company (“AEL”). The transaction builds upon AEL’s prior investment commitments with Pretium, increasing total commitments to $1 billion with pre-agreed terms for expansion to $2.25 billion. The investments will initially be primarily deployed into attractive residential credit assets sourced and managed by Pretium.
In addition to the increased investment commitments to Pretium’s asset management vehicles, AEL has also invested $100 million in the growth of Pretium’s management platform. Pretium intends to use the proceeds to expand its growing franchise and further elevate its leadership in real estate, residential credit and corporate & structured credit.
Pretium distinguishes itself from other residential credit managers by successfully utilizing operating companies alongside its investment management strategies, enhancing both asset sourcing and performance. In 2019, Pretium expanded its residential ecosystem by acquiring Deephaven Mortgage, a leading non-qualified mortgage originator, and Selene Finance, a leading mortgage servicer of performing and non-performing mortgage loans. Most recently, Pretium announced a partnership to add Front Yard Residential (NYSE: RESI) to its portfolio.
“We are pleased to build on our relationship with AEL and bring differentiated and return-enhancing strategies for the benefit of AEL’s investment portfolio,” said Don Mullen, Chairman and CEO at Pretium. “We believe the U.S. residential housing market represents an attractive, immediate investment opportunity. There is a compelling combination of strong housing fundamentals amidst broader economic uncertainty at a time when few capital providers possess the requisite infrastructure and experience to capitalize on these opportunities. Thanks to our integrated platform, we are well positioned to deliver industry-leading returns for our investors while effectively serving the needs of borrowers.”
Anant Bhalla, Chief Executive Officer of AEL, said: “This partnership is a continuation of our AEL 2.0 strategy, leveraging our $56 billion investment portfolio to gain access to unique asset sourcing and servicing capabilities and allowing AEL to participate in the shareholder value creation of a high growth asset manager. Pretium’s deep credit expertise, insurance acumen, differentiated platform and ability to deliver attractive, capital efficient general account investments make Pretium an ideal partner for AEL.”
Pretium is a specialized alternative investment management firm focused on residential real estate, mortgage finance, 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, the residential housing sector, and mortgage finance markets. Pretium has built an integrated analytical and operational ecosystem within the U.S. residential housing, mortgage, 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 more than $16 billion of assets under management as of October 1, 2020 and employs approximately 1,500 employees across 26 offices. Please visit www.pretium.com for additional information.
About American Equity
American Equity Investment Life Insurance Company is a full-service underwriter of fixed annuity products, with a primary emphasis on the sale of fixed index annuities. Headquartered in West Des Moines, Iowa, American Equity Investment Life Insurance Company is committed to providing products with integrity, as well as superior service to the agents it partners with and their policyholders. American Equity Investment Life Insurance Company is a subsidiary of American Equity Investment Life Holding Company, a New York Stock Exchange listed company (NYSE: AEL). For more information, please visit www.american-equity.com.
For more information, please contact:
Sard Verbinnen & Co.
George Sard/Jared Levy/Jamie Tully
Steven D. Schwartz, Vice President – Investor Relations