Bain Capital buys controlling stake in US property lender
US residential property lender Archwest Capital has secured “strategic growth investment” from alternative asset manager Bain Capital in return for a controlling stake in the company.
Archwest’s management, led by chief executive Shawn Miller, will retain a minority holding.
Financial terms of the deal were not disclosed.
Read more: Bain Capital Credit invested $2bn last year
Archwest specialises in non-owner-occupied residential real estate financing, including fix and flip, bridge, construction, rental, and multifamily loans.
It has originated over $700m (£546m) in business purpose assets across nearly 1,200 units.
“Today more than ever, real estate investors and developers need reliable lending partners who are agile and can provide certainty of execution to solve their complex financing needs,” said Miller. “Bain Capital shares our vision for building Archwest into the leader for US business purpose lending, and we look forward to leveraging their resources and operational capabilities to further enhance our innovative product suite and strengthen our value-added proposition to our borrowers and broker partners.”
Read more: Bain veteran to launch European credit fund
David DesPrez, a managing director at Bain Capital, said: “We are pleased to partner with Shawn and the Archwest team to deliver dynamic financing solutions to home builders, renovators and landlords who are expanding and improving the critically undersupplied US housing stock.
“We believe that combining the Archwest team’s deep lending and operational capabilities with a bespoke capital solution from Bain Capital sets Archwest up to be the leader in the non-owner-occupied residential lending space.”
Irell & Manella acted as legal adviser to Archwest. Piper Sandler Companies acted as financial adviser and Dechert acted as legal adviser to Bain Capital.
Read more: Private credit funds can capitalise on real estate market challenges
