Pretium has closed its second residential credit fund at $1.7 billion. The fund invests in U.S. residential mortgage loans. Pretium Residential Credit Fund II’s investors include insurance companies, pension plans, and wealth managers. Simpson Thacher & Bartlett LLP served as fund counsel.
NEW YORK, April 6, 2022 /PRNewswire/ — Pretium, a specialized investment firm with over $40 billion in assets, today announced that it has closed its second residential credit fund, Pretium Residential Credit Fund II, with $1.7 billion in capital commitments, which exceeded its target and is nearly twice the size of its predecessor residential credit fund. The Fund received strong support from a broad range of investors and institutional consultants globally, including insurance companies, pension plans, and wealth managers.
The Fund invests in U.S. residential mortgage loans that fall outside the traditional mortgage system and are less able to be serviced by traditional banks. Through its integrated residential ecosystem, which includes industry-leading specialized mortgage servicing and loan origination platforms and loan-level analytics, Pretium is able to maximize value creation for investors.
“Our investment strategy reflects the decades of experience our team has across all aspects of mortgage investing and through multiple economic cycles,” said Jonathan Babkow, Senior Managing Director and Co-Head of Residential Credit at Pretium. “We are pleased to have closed our largest residential credit fund to date, and we are grateful for the support from our partners as we identify new opportunities in an unprecedented residential credit market, defined by strong demand for housing and record levels of home equity.”
“This record fundraise is a testament to the strength of our team, platform, and long-term vision, and we look forward to building on our momentum to date,” said Matt Nichols, Senior Managing Director and Co-Head of Residential Credit at Pretium. “Our returns are driven by our ability to successfully restructure loans to help borrowers find sustainable payment structures that keep them in their homes and maximize the value of the loans for our investors.”
Pretium has continued to invest in building its leading Residential Credit platform with recent hires, including Managing Directors Sarah Kong from Goldman Sachs, Andrew Miller from Fortress, and Peter Morreale from Cadwalader. These seasoned professionals expand Pretium’s ability to source, originate and invest in a broader range of mortgage products.
Simpson Thacher & Bartlett LLP served as fund counsel.
Pretium is a specialized investment firm focused on U.S. residential real estate, residential credit, 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. Pretium has built an integrated analytical and operational ecosystem within the U.S. housing, residential credit, 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 over $40 billion of assets under management and employs approximately 3,000 people across 30 offices, including London and Dubai. Please visit www.pretium.com for additional information.