CEO says funding "positions CrossCountry Mortgage for accelerated growth"
Nonbank lender CrossCountry Mortgage has secured $400 million in funding through a loan facility with Ares Management.
According to its release, the financing was arranged through funds managed by Ares’ alternative credit and US direct lending strategies.
CrossCountry CEO Ron Leonhardt Jr. said the financing “positions CrossCountry Mortgage for accelerated growth as we continue to expand our platform, geographical footprint, and residential mortgage offering.”
“As CrossCountry Mortgage continues to execute its organic and inorganic growth strategy, we believe the company is well-positioned to benefit from its favorable purchase-focused origination volumes, a scaled retail platform, attractive industry demographics and supply tailwinds, and strong free cash flow dynamics,” said Kevin Alexander, a partner in Ares’ Credit Group.
“We look forward to working with the Company’s management team to capitalize on the significant opportunities ahead.”
Global investment group Caisse de dépôt et placement du Québec (CDPQ) also participated in the financing through a wholly-owned subsidiary as part of its Capital Solutions investment strategy.
“As one of the fastest-growing nonbank originators and servicers of residential mortgages, CrossCountry Mortgage is well-positioned to continue its trajectory in American housing,” said Martin Laguerre, head of private equity and capital solutions at CDPQ.
“Alongside our longstanding partner Ares, we draw on the combined strengths of our teams to offer flexible credit financing tailored to the company’s needs – a result which offers attractive risk-adjusted returns for our clients, a core element sought by our Capital Solutions strategy.”