Värde Partners has closed its buy of majority stake in Trimont Real Estate Advisors. Financial terms weren’t announced. Trimont’s current owners will have a minority investment in the new entity, which is retaining the Trimont name. Trimont is a real estate financial services provider with $85 billion of client capital under management. Raymond James advised Trimont.
MINNEAPOLIS, September 9, 2015 — Värde Partners (“Värde”), a global alternative investment firm, today announced that certain funds managed by Värde completed the acquisition of the Atlanta-based real estate financial services firm Trimont Real Estate Advisors (“Trimont”). Under the terms of the transaction, the Värde funds will be majority owners and Trimont’s current owners will have a minority investment in the new entity, which will retain the Trimont name. Financial terms were not disclosed.
With $85 billion of client capital under management, Trimont provides real estate financial services, including asset management, asset servicing, construction loan administration and services, and underwriting. Trimont’s roster of clients spans the real estate world, and the business creates an important platform for Värde’s growing real estate business.
Värde will integrate the operations of First City Financial Corporation (“FirstCity”), a commercial finance company owned by certain Värde funds with Trimont, creating a new Dallas office for Trimont.
“Trimont has a great brand name, a strong management team, exceptional client base and an excellent book of business in real estate financial services,” said Jim Dunbar, Managing Director of Värde.
“By integrating FirstCity with the operations of Trimont we are building a bigger operation with a broader product offering and a larger geographic footprint.” Brian Schmidt, Sr. Managing Director and Head of U.S Real Estate at Värde, added, “We are excited to expand even further into this attractive market as the demand for non-bank financial services is increasing, especially in the resurgent construction lending market.”
Greg Winchester, Trimont principal said, “We are excited to be joining the Värde portfolio of real estate businesses and combining with FirstCity, which immediately gives Trimont more assets, customers and services. We are opening a new chapter in Trimont’s 27-year history as an important force in the real estate services industry.”
Mr. Winchester and founding partners John Charles and Ernie Davis have agreed to stay with Trimont through a transition period and will be meaningful shareholders in the company.
The transaction closed today.
Raymond James served as exclusive financial advisor to Trimont on the transaction. Mayer Brown LLP served as legal counsel to Värde, and Dentons US LLP served as legal counsel to Trimont.
About Trimont Real Estate Advisors
Trimont Real Estate Advisors (trimontrea.com) is a real estate financial services provider with $85 billion of client capital under management, providing services to commercial lenders and investors since 1988. With 170 employees in Atlanta, New York, Los Angeles, London and Amsterdam, the company core client services include asset management (primary, construction and special), asset servicing, construction loan administration, underwriting and due diligence, information management and public finance.
Trimont is a highly rated primary, special, and construction servicer, with particular expertise in repositioning and development deals. Trimont is rated by Standard & Poor’s as a Commercial Mortgage Special Servicer (Strong) a Construction Loan Servicer (Strong), and Commercial Primary Servicer (Above Average). It is rated by Fitch as a Primary Servicer (CPS2+) and a Special Servicer (CSS2) and by Kroll Bond Ratings, Inc.
About Värde Partners Värde Partners is a $10 billion global alternative investment firm that employs a credit-oriented, value-based approach to investing across a broad array of geographies, segments and asset types, including real estate, corporate credit, residential mortgages, specialty finance, transportation and infrastructure. The firm sponsors and manages a family of private investment funds with a global investor base that includes foundations and endowments, pension plans, insurance companies, other institutional investors and private clients. Now in its third decade, Värde employs over 200 people with main offices in Minneapolis, London and Singapore