SKW Funding, Bain Capital Credit form J.V. to target distressed real estate


SKW Funding and Bain Capital Credit LP said July 16 that they have formed a joint venture to target sub- and non-performing notes. The J.V. is seeking $500 million of acquisitions over the next two-and-a-half years. The J.V. has acquired a $27 million portfolio of four non-performing notes secured by 652 garden-style apartment units in San Antonio, Texas.

PRESS RELEASE

NEW YORK & BOSTON–(BUSINESS WIRE)–SKW Funding, a private lending and distressed debt platform, and Bain Capital Credit, LP today announced the formation of a joint venture that will target sub- and non-performing notes. The joint venture will target $500 million of acquisitions over the next two-and-a-half years.
Concurrently, the joint venture announced its first acquisition, a $27 million portfolio of four non-performing notes secured by 652 garden-style apartment units in San Antonio, Texas.
SKW Funding is led by Daniel Wrublin and Andrew Wrublin of Dalan Management, and Ayush Kapahi and Jerry Swartz of HKS Real Estate Advisors. Bain Capital Credit is a leading global credit specialist with approximately $41 billion in assets under management.
The joint venture will seek opportunities nationally, with a focus on acquisitions in the greater New York City market. SKW Funding and Bain Capital Credit will also target special situation loan originations including mezzanine and preferred equity investments.
“With the slowdown in transaction volume and the recent rent law changes in New York City, we see this as an ideal time to provide solutions to borrowers looking for structured capital, and to lenders looking to sell off their assets/loans due to market conditions and regulatory pressure,” said Kapahi.
“While the U.S. real estate capital markets remain robust, we are seeing idiosyncratic, borrower-driven distressed situations and signs of late-cycle lender fatigue that we believe will lead to increased opportunities in non-performing loans,” said Jeff Robinson, a Managing Director and Global Head of Bain Capital Credit’s Distressed and Special Situations Group. “We are excited to partner with the SKW team and to further expand our capabilities to capitalize on opportunistic real estate loans, portfolio acquisitions and financings,” added David DesPrez, a Vice President at Bain Capital Credit.
“We are pleased to close on the San Antonio portfolio and even more excited that it represents the beginning of our joint venture with Bain Capital Credit. We anticipate that our long-standing reputation and experience within the lending and borrowing communities, coupled with Bain Capital Credit’s investment acumen and credit analysis expertise, will lead to very exciting opportunities for both firms,” said Daniel Wrublin.
About SKW Funding
SKW Funding, founded in 2014 by Principals Ayush Kapahi, Jerry Swartz, Daniel Wrublin, and Andrew Wrublin, is a New York based opportunistic commercial real estate investment platform focusing on debt across every category of commercial real estate throughout the nation. Messrs. Kapahi and Swartz have facilitated billions of dollars in transactions in mortgage origination, and related services for every form of lending and equity participation conceivable, including syndication, direct lending, construction, development, ownership, management, plus debt and equity procurement in every category of Real Estate. Daniel Wrublin and Andrew Wrublin are Principals of Dalan Management Associates, Inc., a Manhattan based firm that currently owns and manages more than 60 buildings in New York City, Los Angeles, and Phoenix. The portfolio is valued at over $1 billion and consists of over 2,000 residential units and 100 commercial units across 2,000,000 square feet.
About Bain Capital Credit
Bain Capital Credit (www.baincapitalcredit.com) is a leading global credit specialist with approximately $41 billion in assets under management. Bain Capital Credit invests up and down the capital structure and across the spectrum of credit strategies, including leveraged loans, high-yield bonds, distressed debt, private lending, structured products, non-performing loans and equities. Our team of more than 200 professionals creates value through rigorous, independent analysis of thousands of corporate issuers around the world. In addition to credit, Bain Capital invests across asset classes including private equity, public equity, venture capital and real estate, and leverages the firm’s shared platform to capture opportunities in strategic areas of focus.