Amherst Holdings LLC, a holding company for businesses focused on the mortgage sector, has raised $225 million in private equity and debt funding from an investor consortium led by Stone Point Capital.
Amherst Holdings, LLC, a holding company for businesses focused on the mortgage sector, today announced the completion of a $225 million investment from a group of private investors. Amherst intends to use the capital to enhance its strong capital and liquidity positions, bolster its loan-level analytic tools, and expand the sales and trading activities of its established broker-dealer subsidiary, Amherst Securities Group, LP (“Amherst Securities”), in the residential mortgage-backed securities (RMBS) and related markets. Amherst has raised a combination of common equity and senior participating debt from a group of investors led by Stone Point Capital, a global private equity firm based in Greenwich, CT that invests exclusively in the financial services industry. The other investors are leading institutional investors that in aggregate manage more than $80 billion of dedicated alternative investment capital.
“I am very excited to announce this partnership with an outstanding group of investors,” said Sean Dobson, Chairman and Chief Executive Officer of Amherst Holdings. “Through their sponsorship, Stone Point and our new partner group have enabled the Amherst companies to expand services at a time when research, risk management and RMBS experience are in tremendous demand. The additional capital will be used primarily to provide additional liquidity and market-making services for our clients and hire new sales and trading professionals to enhance our capabilities.”
Charles A. Davis, Chief Executive Officer of Stone Point said: “We are delighted to be teaming up with Sean Dobson and his partners at Amherst during a time of unprecedented volatility in the mortgage sector. The Amherst team has a deep knowledge of the mortgage securities market that has served its clients well. Amherst has operated until now as a highly profitable partnership owned and operated by its employees, and it will now have the additional growth capital necessary to take advantage of the emerging opportunities in this market.”
Stone Point Capital led the transaction on behalf of Trident IV, L.P.
The capital infusion is intended to be deployed through the company’s two principal operating subsidiaries, Amherst Securities, a specialist market-maker in U.S. RMBS, and Amherst Derivatives Trading LLC, a consultancy and derivatives trading platform. The Amherst companies represent a comprehensive risk management, research and investment platform for participants in the U.S. single-family mortgage markets.
About Amherst Holdings
Amherst Holdings is the holding company for several companies dedicated to assisting institutional investors in the US residential mortgage markets. The firm’s principal subsidiary, Amherst Securities Group, L.P., is a specialist broker-dealer with more than 15 years experience analyzing and trading residential mortgage-backed securities. Amherst’s experienced professional staff utilizes proprietary analytical tools to provide actionable intelligence to institutional clients that are seeking to understand and profit from the complexities and risks of the mortgage securities market. More information about Amherst can be found on www.amherstholdings.com.
About Stone Point Capital LLC
Stone Point Capital LLC (www.stonepoint.com) is a global private equity firm based in Greenwich, Connecticut. Stone Point Capital, which serves as the manager of the Trident Funds, has raised more than $10 billion of committed capital for investments in the global insurance and financial services industries.