Angel Oak Capital Advisors closes capital raise for non-QM investment

by Francis Monfort08 Jan 2018
Angel Oak Capital Advisors has announced that it has closed its first private credit fund to new investors after the investment management firm exceeded its initial fundraising goal of $250 million.

The Angel Oak Real Estate Investment Fund I LP private credit fund has raised capital commitments totaling $291 million, signaling investor interest in non-bank lending.

The fund will invest primarily in non-qualified mortgages. Angel Oak said commitments allow investors to access the growing opportunity in non-bank lending to creditworthy borrowers who have been unable to obtain residential mortgages since the credit crisis.

“More and more, we’ve seen institutional investors recognize the growth potential for non-bank lending,” said Sreeni Prabhu, co-CEO and chief investment officer of Angel Oak. “Our success in raising capital for Angel Oak Real Estate Investment Fund I demonstrates strong investor interest in the fund’s differentiated strategy to provide attractive, risk-adjusted returns backed by residential real estate. We believe this opportunity, when paired with our expertise in non-agency mortgage credit, makes this an attractive investment.”

Angel Oak says it is well positioned in the private residential mortgage market. The company boats of expertise in non-agency mortgage credit coupled with vertical integration with affiliated mortgage companies.

Angel Oak manages more than $3.5 billion in residential mortgage credit in both loans and securities and has securitized $850 million in non-QM loans since 2015. Its affiliated mortgage companies originated more than $1 billion in non-QM loans in 2017.

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