Fairbridge Announces up to $100 Million Loan Agreement with OaktreeApr 29, 2022
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Investment bolsters Fairbridges position as a leader in bridge financing
NEW YORK, NEW YORK, UNITED STATES, April 29, 2022 /EINPresswire.com/ — Fairbridge Asset Management LLC (Fairbridge or the Company), a direct portfolio private lender focused on originating, investing and managing commercial real estate loans in major markets throughout the United States, today announced that it has entered into a $50 million loan agreement with an option for two additional $25 million tranches with funds managed by affiliates of Oaktree Capital Management, L.P. (Oaktree), a leading global investment firm. The participating funds within Oaktree will also receive warrants to purchase a minority interest in Fairbridge. The Company expects the proceeds from the financing will support the expansion of Fairbridges bridge lending platform.
Fairbridge provides fast, flexible and creative bridge funding solutions to real estate professionals looking to capitalize on opportunistic real estate transactions. The Companys institutional platform can originate mortgage loans with a principal value of up to $50 million, with a particular emphasis on borrowers seeking $10 million or less. Fairbridge believes the inefficiency and fragmentation of this market segment allows for greater yields and better structuring opportunities.
Brian Walter, Co-Founder and Managing Partner of Fairbridge, said, The market for bridge lending is complicated and disjointed. We assist borrowers by delivering integrated, creative solutions that unlock value across the entire capital structure. This investment from Oaktree will support our pursuit of capturing a larger share of the fast-growing bridge lending market.
John Lettera, Co-Founder and Partner of Fairbridge, added,
“Oaktree is an experienced investor with significant resources and expertise in providing creative financing solutions. This commitment will enable us to continue executing on our robust pipeline of transactions and organic growth initiatives. We are very pleased to welcome Oaktree as a financing partner to accelerate our next stage of growth.”
Raghav Khanna, Managing Director and Co-Portfolio Manager of Oaktrees Strategic Credit Strategy, said, We are delighted to partner with Fairbridge as it executes its growth strategy of providing innovative bridge loan solutions to commercial real estate borrowers. Fairbridge has a strong, experienced management team and compelling story. We believe the company is well-positioned to be a leader in this rapidly-growing segment of the real estate market.
Paul Hastings LLP served as legal counsel to Oaktree and Hunton Andrews Kurth LLP served as legal counsel to Fairbridge.
About Fairbridge Asset Management
Fairbridge is a vertically integrated real estate private equity firm with expertise in real estate credit strategies. Fairbridge pursues debt investments by originating senior secured loans, mezzanine loans and preferred equity investments for the construction, acquisition, and refinancing of commercial real estate, and by acquiring non-performing loans and preferred equity investments. Fairbridge provides fast, flexible and creative funding solutions for real estate professionals looking to capitalize on opportunistic real estate transactions. Fairbridge is a portfolio lender and manages several investment vehicles. For additional information, please visit Fairbridge’s website at http://FairbridgeLLC.com.
Oaktree is a leader among global investment managers specializing in alternative investments, with $166 billion in assets under management as of December 31, 2021. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in credit, private equity, real assets and listed equities. The firm has over 1,000 employees and offices in 20 cities worldwide. For additional information, please visit Oaktrees website at http://www.oaktreecapital.com/.
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