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AmWest Funding Corporation ("AmWest"), funds managed by Ares Management Corporation's (NYSE:ARES) ("Ares") Alternative Credit strategy, and Park Capital Management ("Park Capital") announced today that AmWest and Ares have finalized a joint venture to purchase and invest in Non-QM loans, sourced and serviced by AmWest. The joint venture will seek to capitalize on AmWest's strong position as a leading mortgage originator and servicer with over $15 billion of Non-QM mortgage originations since inception, primarily sourced via its national wholesale platform.
"We are pleased to enter into this partnership with Ares, which will allow us to grow our business and further capitalize on the current market environment," said William Park, Founder and Chairman of AmWest. "We pride ourselves in the trusted brand that we have built and look forward to continuing to support mortgage brokers and homebuyers with exceptional products and service."
"Our partnership with Ares is a testament to the confidence we have in our operating platform and our strategy of building and developing Park Capital Management," said Kenneth Jo, Chief Executive Officer of AmWest. "We look forward to working with the Ares team to source and securitize attractive residential mortgage investments together in the years ahead."
Ares will provide 90% of the joint venture's capital with AmWest providing the remaining 10%. This collaboration is expected to benefit from the experience of AmWest and Ares' leadership teams alongside a successful track record of building large-scale Non-QM investment and securitization platforms. AmWest has securitized a combined $3.1 billion in unpaid principal balance in the last 3 years. The joint venture will seek to securitize the mortgage loans using the HOMES and PRKCM shelves.
"This partnership furthers Ares' evolution as an important player in the residential mortgage space," said Kevin Alexander, Partner in the Ares Credit Group "AmWest's ability to originate and service superior mortgage assets is a perfect fit for Ares' Alternative Credit's mandate."
The Ares Alternative Credit strategy is one of the largest investors in asset based credit managing approximately $33.9 billion in assets under management as of December 31, 2023. The team invests across the capital structure and seeks opportunities in specialty finance, lender finance, loan portfolios, equipment leasing, structured products, net lease, cash flow streams (royalties, licensing, management fees) and other asset-focused investments.
"As a platform that is invested across the mortgage space from multiple pockets of capital, Ares was able to provide a solution that fit AmWest to grow their business," said Michael Flynn, Managing Director in the Ares Credit Group. "Both Ares and AmWest are focused on building this partnership to source assets with strong credit quality that will ultimately lead to successful securitization platforms."
ATLAS SP Partners served as sole financial advisor and Mayer Brown LLP served as legal counsel to both AmWest and Park Capital in connection with the transaction.
Posted In: ARES
