Pretium and American Equity Announce Strategic Partnership
October 29, 2020 at 16:17 PM EDT
NEW YORK, Oct. 29, 2020 /PRNewswire/ -- Pretium today announced it entered into an expanded strategic partnership with American Equity Investment Life Insurance Company ("AEL"). The transaction builds upon AEL's prior investment commitments with Pretium, increasing total commitments to $1 billion with pre-agreed terms for expansion to $2.25 billion. The investments will initially be primarily deployed into attractive residential credit assets sourced and managed by Pretium.
In addition to the increased investment commitments to Pretium's asset management vehicles, AEL has also invested $100 million in the growth of Pretium's management platform. Pretium intends to use the proceeds to expand its growing franchise and further elevate its leadership in real estate, residential credit and corporate & structured credit.
Pretium distinguishes itself from other residential credit managers by successfully utilizing operating companies alongside its investment management strategies, enhancing both asset sourcing and performance. In 2019, Pretium expanded its residential ecosystem by acquiring Deephaven Mortgage, a leading non-qualified mortgage originator, and Selene Finance, a leading mortgage servicer of performing and non-performing mortgage loans. Most recently, Pretium announced a partnership to add Front Yard Residential (NYSE: RESI) to its portfolio.
"We are pleased to build on our relationship with AEL and bring differentiated and return-enhancing strategies for the benefit of AEL's investment portfolio," said Don Mullen, Chairman and CEO at Pretium. "We believe the U.S. residential housing market represents an attractive, immediate investment opportunity. There is a compelling combination of strong housing fundamentals amidst broader economic uncertainty at a time when few capital providers possess the requisite infrastructure and experience to capitalize on these opportunities. Thanks to our integrated platform, we are well positioned to deliver industry-leading returns for our investors while effectively serving the needs of borrowers."
Anant Bhalla, Chief Executive Officer of AEL, said: "This partnership is a continuation of our AEL 2.0 strategy, leveraging our $56 billion investment portfolio to gain access to unique asset sourcing and servicing capabilities and allowing AEL to participate in the shareholder value creation of a high growth asset manager. Pretium's deep credit expertise, insurance acumen, differentiated platform and ability to deliver attractive, capital efficient general account investments make Pretium an ideal partner for AEL."
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SOURCE Pretium Partners, LLC