MountainView Capital Holdings LLC, a Denver-based lender in the secondary residential mortgage market, has raised $65 million in common equity. Backers include Union Square Partners, CLAC Industries and MountainView management.
MountainView Capital Holdings, LLC announced today that it has closed on a $65 million common equity capital raise. The investors are comprised of Union Square Partners, CLAC Industries and MountainView management. The funds will be used primarily to make principal whole loan investments in the secondary residential mortgage market.
Led by Michael Morgan, President and Chief Executive, and Chris Rooker, Managing Principal and Head of Sales and Trading, MountainView provides a full range of services focused on the residential mortgage market, including whole loan sales and trading, brokerage of mortgage servicing rights and mortgage-related analytic/valuation services. Additionally, to augment its existing business, concurrent with the new capital raise, MountainView has acquired an existing mortgage servicing platform.
In connection with the capital raise, MountainView plans to opportunistically purchase pools of residential mortgage product in the secondary market ranging from performing and “scratch and dent” loans to non-performing mortgage assets. MountainView has already begun investing the new equity capital in mortgages and mortgage servicing rights. To the extent the current market conditions continue for an extended period of time, the investor group is prepared to commit further equity capital to MountainView to further support existing operations, as well as develop complementary lines of business.
Michael Morgan, CEO, commented, “The current disruption in the residential mortgage market provides a great opportunity for the MountainView team to couple its 18 years of experience in the mortgage space with the talent and capital of the investor group to build an opportunistic and dynamic company. We are extremely excited by the new alliance with the investor group and the potential we see for the new MountainView.”
Chris Rooker, Managing Principal and Head of Sales and Trading, commented, “We have been looking forward to building our balance sheet and becoming a more significant principal investor since operating as Matrix Bancorp Trading. We are going to continue to concentrate on our core business of trading, brokering mortgages and mortgage servicing rights, as well as continuing to be the leading provider of mortgage servicing rights valuation services. We are seeing opportunities in the mortgage space unprecedented since the days of the Resolution Trust Corporation some 15 or 20 years ago and we believe that these opportunities will continue to exist over the next several years.”
Bob Spass, Senior Partner of Union Square Partners, commented, “The flexibility of MountainView's business model allows it to direct resources and capital to those mortgage asset classes where the potential for profitability is greatest. Having reviewed numerous mortgage-related investment opportunities over the last twelve months, we believe MountainView has the right platform at the right time to benefit from the current turmoil in the residential mortgage environment.”
Union Square Partners is a leading global private equity firm focused exclusively on the financial services industry. Together with its predecessor funds,
CLAC Industries is a privately held investment company controlled by David Ducote and Daniel Conwill IV. CLAC's affiliate, Tchoupitoulas Partners, has been an active investor in distressed commercial mortgages over the past decade.
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