Trimont to acquire Wells Fargo CMS business
Trimont has inked a deal to acquire Wells Fargo’s non-agency third-party commercial mortgage servicing (CMS) business.
The deal will make Trimont the largest loan servicer in the US commercial real estate (CRE) industry, with a combined $715bn (£548.27bn) of loans under management. This equates to an 11 per cent share of the US CRE market.
“Trimont and Wells Fargo’s CMS are recognised experts in their respective areas of concentration,” said Bill Sexton, chief executive of Trimont.
“The businesses are highly complementary and combining them allows Trimont to provide a unique and comprehensive service offering to the increasingly sophisticated CRE lending market.
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“We look forward to welcoming the team from Wells Fargo, and working with them to capitalise on our strengths as we continue to deliver superior service and value to the clients of both businesses.”
The transaction was backed by Värde Partners, a global alternative investment firm which acquired and has owned Trimont through certain funds since 2015.
“The addition of Wells Fargo’s CMS business is accretive to Trimont and will strengthen its market position for years to come,” said Jim Dunbar, chair of Trimont and partner at Värde Partners.
“This strategically important transaction positions Trimont to be a key partner to real estate capital providers given its breadth and scale of services.
“We are very excited to welcome the Wells Fargo CMS team to Trimont and enthusiastic about the growth trajectory ahead of the combined business.”
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Trimont primarily works with non-bank and alternative lenders. Through this acquisition, Trimont will be able to offer comprehensive servicing across all non-bank commercial real estate lending structures, including master servicing.
The transaction is subject to closing conditions and is expected to be finalized in early 2025.
Kara McShane, executive vice president, and head of Wells Fargo’s CRE business, said that the transaction is “consistent with Wells Fargo’s strategy of focusing on businesses that are core to our consumer and corporate clients.”
“We remain committed to our market-leading commercial real estate business, and we will continue to serve our clients with a broad suite of lending, advisory and capital markets capabilities while leveraging our franchise to grow our corporate and investment bank,” she added.
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