Schroders deepens private debt capabilities through investment in commercial real estate lending firm A10 Capital
Schroders today announces that it has made a 20% equity investment in, and provided financing in connection with the recapitalization of, A10 Capital, a full-service commercial real estate (CRE) lending organization specializing in mid-market CRE loans, including bridge and permanent loans. Founded in 2007, A10 Capital is based in the United States with origination offices in key markets and principal offices in Boise, Idaho and Dallas, Texas.
The investment is being made alongside an investment by Gemspring Capital, a middle market private equity firm based in Westport, Connecticut.
Concurrent with the investment, Schroders and A10 have entered into an agreement through which Schroders will benefit from A10’s extensive origination network and servicing platform to access mid-market CRE loan opportunities for its clients. The agreement also provides A10 with the opportunity to significantly diversify its balance sheet funding model. The two firms have a five-year history of successful collaboration and this new relationship deepens the commitment by Schroders to provide client capital to this important market segment. The portfolio management process will be overseen by Schroders’ New York-based Securitized Credit team, led by Michelle Russell-Dowe, Head of Securitized Credit with Jeff Williams, Fixed Income Fund Manager, serving as lead portfolio manager for this initiative.
Karl Dasher, CEO – North America and Co-Head of Fixed Income, said:
“We are pleased to join Gemspring as a co-investor in the recapitalization of A10 and to deepen our relationship with the team. A10 has established a technology driven platform with a strong credit culture that fits well with our investment and corporate culture. Their sourcing and servicing capability will play an important role in our effort to offer more private debt opportunities that meet the growing investor need for compelling fixed income returns while maintaining rigorous credit standards.”
Jerry Dunn, CEO of A10 said,
“This transaction further strengthens A10’s balance sheet. A10’s continuing on balance sheet loan programs combined with the opportunity, where mutually beneficial,to access funds and separate accounts managed by Schroders, greatly broadens our ability to serve our borrowers, building on our legacy as a thought leader in middle-market commercial real estate lending.”
Broadhaven Capital Partners acted as financial advisor to Schroders in connection with the transaction, and Sidley Austin LLP acted as Schroders’ legal counsel.
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Schroder Investment Management North America Inc. (“SIMNA”) is an indirect wholly owned subsidiary of Schroders plc, a UK public company with shares listed on the London Stock Exchange, and is an SEC registered investment adviser providing asset management products and services to clients in the US and Canada. Schroder Fund Advisors LLC (“SFA”) is a wholly-owned subsidiary of SIMNA Inc. and is registered as a limited purpose broker-dealer with FINRA and markets certain investment vehicles for which SIMNA Inc. is an investment adviser. The Schroder mutual funds (the “Funds”) are distributed by SEI Investments Distribution Co (“SIDCO”), a member of FINRA. SFA previously served as the distributor of the Funds. Although SFA has been replaced by SIDCO as the distributor of the Funds, SFA continues to be involved in the distribution of shares of the Funds through an agreement with SIDCO, and SFA, SIMNA and their affiliates continue to provide shareholder services to the Funds. SIDCO is not an affiliate of Schroders plc.
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About A10 Capital, LLC
Both commercial property and single-family rental home investors rely on A10 Capital as their one-stop balance sheet lender for middle-market commercial mortgages. With loans ranging from $1 million to over $30 million per commercial property and as authorized Seller/Servicer of the Freddie Mac Single-Family Rental (SFR) pilot program, A10’s broad menu of bridge and permanent loans cover the entire life cycle of properties across the United States. The Company’s full-service platform incorporates focused origination, speedy underwriting, in-house legal and servicing for the life of the loan. An innovator in the industry with a scalable funding model, A10 is backed by significant institutional investors. A10 is based in Boise and Dallas and has regional offices in key markets nationwide. For more information, visit www.a10capital.com.
The views and opinions contained herein are those of Schroders' investment teams and/or Economics Group, and do not necessarily represent Schroder Investment Management North America Inc.'s house views. These views are subject to change. This information is intended to be for information purposes only and it is not intended as promotional material in any respect.