LONDON–(COMMERCIAL THREAD) – Fortress Investment Group LLC (“Fortress”) today announced an agreement to sell Foundation Home Loans, the UK’s specialist mortgage lender and service provider, to Athene Holding Ltd., a financial services company of leading plan specializing in retirement savings solutions.
Foundation Home Loans (the trademark of Paratus AMC Limited) is one of the best-known names in the European mortgage, management and securitization markets. As GMAC-RFC, the company became the 10e the largest UK originator of residential mortgages, a leading UK RMBS issuer and a central contributor to the formation of the specialist lending market.
Funds managed by Fortress subsidiaries acquired GMAC-RFC from GMAC in October 2010 as the company and its loan portfolio faced significant challenges in the aftermath of the global financial crisis. The Fortress-appointed management renamed the company and immediately set out to transform the business into a focused and highly efficient mortgage service, as many borrowers struggled to remain owners after the global financial crisis. With a strong focus on client outcomes and providing solutions to distressed borrowers, the company has seen dramatic improvements in loan performance and a substantial drop in arrears levels in a £ 4bn portfolio. of inherited mortgages.
Under Fortress leadership, the company returned to profitability in 2011, and in 2015 the company relaunched mortgages under the Foundation Home Loans brand, which established itself as one of the top three specialty mortgage lenders. in buying and leasing and a growing provider of specialty mortgages to residential borrowers. Since the lending revival, Foundation Home Loans has generated over £ 2.5bn in mortgages, including over £ 500m in the first half of this year.
Foundation Home Loans has also developed a strong capital markets presence under Fortress, with cumulative RMBS issuances of over £ 3 billion from ten transactions since 2017, including the successful securitization of legacy mortgage portfolios acquired from third. As of June 2021, Foundation Home Loans had mortgages of over £ 3bn on its balance sheet and managed an additional £ 930,000,000 for total assets under management of almost £ 4bn.
During nearly 11 years under the ownership of FIG, the company’s workforce has more than doubled to nearly 300 employees. The company continued to be headquartered in Bracknell, Berkshire, where it was founded.
Commented Hans Geberbauer, CEO of Foundation Home Loans and employee of the company since 2002: “Since acquiring the company in 2010, Fortress has been an incredibly caring owner, pulling the company out of the Great Financial Crisis and investing its expertise and capital to build a leading specialty mortgage lender. Fortress has continually reaffirmed its commitment to our business, our vision and the customers we serve, investing in the growth of our business amid the uncertainty created by the Brexit referendum and the COVID-19 pandemic. They have created a solid foundation for the company to thrive under the leadership of its potential new shareholder. ”
The acquisition remains subject to the approval of the Financial Conduct Authority.
About the fortress
Founded in 1998, Fortress manages $ 53.1 billion in assets under management as of March 31, 2021, on behalf of approximately 1,800 institutional clients and private investors worldwide through a range of credit and investment strategies. real estate, private equity and permanent capital investment.