Meridian Capital Group announced a partnership to create a new agency lending platform.
David Brickman, who until recently was CEO of Federal Home Loan Mortgage Corporation (Freddie Mac), will lead the platform as CEO.
Under the terms of the agreement, the joint venture will acquire the assets and liabilities of Barings Multifamily Capital, LLC, including its licenses to participate in various loan programs, and operate the current agency loan creation and management business. led by BMC under new ownership, leadership and branding.
The transaction is subject to approvals from federally sponsored companies (GSEs) and, pending those approvals, is expected to close immediately thereafter.
The newly created platform will operate as a stand-alone business under its own name and brand which will be announced prior to the closing of the transaction.
Meridian will own the majority of the newly created platform and its ownership is likely to increase over time. Day-to-day management of the platform will be carried out by the joint venture’s dedicated management team, led by Brickman, and the joint venture will be governed by a board of directors majority controlled by Meridian.
In addition to leading the new agency joint venture, Brickman will assume the role of executive chairman of Meridian and senior advisor to Stone Point Capital LLC. As Executive Chairman of Meridian, he will work alongside Ralph Herzka, President and CEO of Meridian, and Yoni Goodman, President of Meridian, to chart the course of the company, expand its product offerings and continue to develop Meridian nationwide.
Brickman has spent most of his career at Freddie Mac working and leading the multi-family business, where he presided over an annual production increase from $ 16 billion in 2010 to nearly $ 80 billion in 2018. He also created the company’s flagship securitization program, as one of the leading securitization products in the structured finance markets.
Meridian also announced today a strategic partnership with investment funds managed by Stone Point Capital to fuel the continued growth of the business as it enters a new phase of geographic and product expansion.
The agency lending partnership with Barings, the addition of Brickman and the strategic partnership with Stone Point Capital come at a pivotal moment in Meridian’s 30-year history. Over the next few years, Meridian will focus on developing its new agency lending joint venture, growing its core mortgage brokerage business nationwide, expanding its investment sales and mortgage products. retail leasing in key markets nationwide and growth in other lines of business.
“We are delighted to embark on this new chapter,” said Ralph Herzka, President and CEO of Meridian Capital Group. “Our partnership with Barings will allow us to join forces with one of the world’s leading asset managers and reintroduce Meridian into the direct branch lending arena. Adding David Brickman to our leadership team means we are working alongside one of the nation’s most prominent multi-family experts. David has not only presided over a period of remarkable expansion at Freddie Mac; it did so through the kind of innovation, creativity and ingenuity that are essential to thrive in today’s market.
Yoni Goodman, President of Meridian, added, “Working towards our goals with Stone Point Capital as a partner means that we will have the resources, the points of contact and the perspective to realize the grand vision we have for Meridian. Ralph and I welcome Mr. Brickman, Barings and Stone Point Capital to the Meridian family.
Commenting on the agency lending partnership, Eric Lloyd, Head of Global Private Assets at Barings, said: “Barings continues to develop its real estate debt capabilities, and our joint venture with Meridian is expanding our reach to a large market. wider. This includes markets that complement our existing institutional commercial mortgage business. “
Chuck Davis, CEO of Stone Point Capital, added, “We are delighted to partner with Meridian as it enters a new phase of growth and development. We believe Meridian is in a unique position to grow its core business and expand into new lines of business, and we look forward to partnering with the team to help them achieve these goals and more.
Subject to regulatory approval, the agency’s lending joint venture will participate, through a wholly owned subsidiary, in the Federal National Mortgage Association’s (Fannie Mae) DUS program, the Federal Optigo network. Home Loan Mortgage Corporation (Freddie Mac) and Federal Housing Administration / Government National Mortgage Association Multi-Family Loan Programs (FHA / GNMA-Ginnie Mae).
In addition, the new business will serve commercial and multi-family loans for Barings’ parent company, MassMutual and other lenders.
Meridian will issue multi-family loans on behalf of the business on a non-exclusive basis, and will continue to provide loans to various banks, lending agencies and funding sources as it has done in the past.
BofA Securities acts as exclusive financial advisor to Barings in connection with the agency lending partnership with Meridian.
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