Stone Point Capital LLC has agreed to buy a majority of Sabal Capital Partners LLC. Financial terms weren’t announced. Sabal, of Irvine, California, is a small balance debt provider and servicer.
IRVINE, Calif., July 16, 2018 (GLOBE NEWSWIRE) — Sabal Capital Partners, LLC, a diversified financial services firm specializing in commercial real estate, lending and investing, announced today that it has recently signed definitive agreements for the acquisition of a majority interest in the company by the Trident VII funds managed by Stone Point Capital LLC. Sabal is a leading small balance debt provider and servicer with a proven business platform and is widely recognized for its innovation. In addition, Sabal Investment Advisors, LLC, Sabal Investment Holdings, LLC and their managed funds will be merged into the Sabal platform to create a leading, vertically integrated lending, servicing and investment management platform focused on the small balance commercial real estate sector.
The pending acquisition is expected to further enhance Sabal’s growth and enable the company to expand its small balance commercial real estate loan offerings and to increase its footprint within the commercial real estate marketplace. Sabal will continue to be operated by its existing team, including Founder and CEO Pat Jackson and other senior members of management, all of whom will be making significant investments in the company alongside the Trident VII funds.
“This transaction signifies the next chapter for Sabal,” said Jackson. “With a firm foothold in the small balance debt sector already established, we understand the benefits of partnering with Stone Point Capital, an investment firm that focuses on financial services. Now, with their support, we are even better positioned to meet the expanded needs of our broker partners with additional debt instruments, while continuing to push the commercial finance arena forward with enhanced technology and efficiency solutions.”
This announcement follows several significant milestones for Sabal, including the company’s recent selection as a Seller/Servicer for Freddie Mac’s Targeted Affordable Housing Express Program and the ongoing, prolific loan origination and servicing volume that has positioned Sabal as one of the top Seller/Servicers for the Freddie Mac Small Balance Loan Program.
“Sabal’s disruption of the commercial real estate finance sector through technology-driven innovation is impressive,” said Chuck Davis, Chief Executive Officer of Stone Point Capital. “The loan volume, efficiency and reputation the company has established is remarkable, and we are excited to partner with Pat and his colleagues as they continue to provide superior service to the company’s clients and investors.”
The acquisition is expected to close in August 2018, subject to customary closing conditions and regulatory approvals.
Sabal Capital Partners and the sellers are represented by financial advisors Wells Fargo Securities, LLC and Beekman Advisors and by legal counsel Arnold & Porter LLP and Kirkland & Ellis LLP. Kramer Levin Naftalis & Frankel LLP serves as legal counsel for Stone Point Capital.
About Sabal Capital Partners Headquartered in Irvine, California, Sabal Capital Partners, LLC and its commercial real estate lending and servicing subsidiaries and affiliates are focused in the small balance lending space and have originated nearly $3 billion nationally through their highly specialized wholesale lending platform. Sabal’s dedication to advancing the financial services industry has led to the development of SNAP™, an innovative platform designed for Sabal’s exclusive network of brokers and bank partners to enable increased revenue, exceptional borrower satisfaction and reduced effort navigating small balance loans, from origination to close. Sabal strives to keep clients and investors ahead of the curve, representing a corporate philosophy based upon the core practices of innovation, partnership, commitment to excellence and entrepreneurship. For more information about Sabal, visit www.sabalcap.com.
About Sabal Investment Advisors, LLC and Sabal Investment Holdings, LLC Sabal Investment Advisors, LLC (“SIA”) and Sabal Investment Holdings, LLC (“SIH”) are registered investment advisory firms located in Irvine, California. SIA and SIH leverage the extensive commercial real estate backgrounds of their senior management team as well as affiliated businesses, which allows their funds to benefit from a fully integrated commercial real estate platform providing the ability to originate, underwrite, service, manage and invest across real estate cycles.
About Stone Point Capital LLC Stone Point Capital LLC is a financial services-focused private equity firm based in Greenwich, Connecticut. The firm has raised and managed seven private equity funds – the Trident Funds – with aggregate committed capital of approximately $19 billion. Stone Point Capital targets investments in the global financial services industry, including investments in companies that provide outsourced services to financial institutions, banks and depository institutions, asset management firms, insurance and reinsurance companies, insurance distribution and other insurance-related businesses, real estate finance and service businesses, specialty lending and other credit opportunities, mortgage services companies and employee benefits and healthcare companies. For more information about Stone Point Capital, visit www.stonepoint.com.