Move will help scale operations and enhance position in residential transition lending sector
Newfi Lending, a non-agency mortgage lender backed by Apollo funds, has expanded its partnership with Dunmor through a minority equity investment.
A news release said the move is intended to boost Dunmor’s position in the residential transition lending market, with Newfi providing additional financing to support its origination capacity.
Dunmor is a lender specializing in bridge, fix-and-flip, and construction loans for real estate developers founded in 2021. It will be using the new capital infusion to further enhance its lending platform and market reach, according to the release.
“Our team has created a remarkable platform and brand, and we are now set to embark on a new growth phase with Newfi as a key strategic partner together with Apollo’s backing,” said Dunmor CEO Franck Ruimy. “This equity investment positions us to continue delivering the high level of service our clients expect, complemented by an even stronger commitment to providing innovative funding solutions at highly competitive rates.”
The agreement also has “several milestones structured to further align and strengthen the relationship between Newfi and Dunmor over time, including opportunities to increase equity ownership,” according to the release.
Newfi CEO Steve Abreu said the decision to invest further in Dunmor was driven by the company’s performance over recent months.
“Over the past six months Dunmor’s platform and performance continues to impress us, and we are looking forward to expanding our relationship with a minority equity investment,” he said.
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