Angel Oak announces bold bid to increase non-agency mortgage market share

It targets to yield $20 billion over the next two or three years

Angel Oak announces bold bid to increase non-agency mortgage market share

Angel Oak Capital Advisors has revealed an “ambitious” capital raise intended to increase its market share in the non-agency mortgage space.

The firm announced Thursday that it amassed approximately $1 billion in capital this year, with the cash allocated for non-agency mortgage originations. Angel Oak’s plan is to generate around $20 billion of non-agency mortgages over the next two or three years.

“Our non-agency investment strategies provide institutional investors with access to the residential mortgage market and, importantly, diversification within their private credit portfolios away from corporate credit,” said Manish Valecha, head of client solutions at Angel Oak Capital. “We believe owning the junior bonds from AOMT securitizations makes for a compelling investment, especially in a zero-bound environment.”

Read more: Angel Oak Mortgage launches new non-QM securitization

“Our institutional capital raising this year is a testament to our ability to provide structured credit solutions that resonate with yield-seeking institutions, including sovereign wealth funds, global pensions, and insurance companies,” said Sreeni Prabhu, managing partner and group chief investment officer at Angel Oak Capital. “Angel Oak’s vertical integration and hands-on approach toward non-agency origination differentiate us in the marketplace. We continue to receive interest from globally recognized institutional investors, which bodes well for our capital raising efforts going forward.”

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