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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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.