New York Life Investment Management (NYLIM) has taken a majority stake in Invictus Capital Partners, a $20bn (£17.6bn) US single-family residential credit manager.

The acquisition will expand NYLIM’s residential mortgage investment capabilities across its $304bn global private markets platform, including private credit and asset-based finance. It also adds Invictus’s loan sourcing and operations platform, Verus Mortgage Capital.

Both firms said the partnership would allow them to provide an integrated capability  across residential mortgage sourcing, underwriting, financing, securitisation and asset management.

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“Invictus has built a differentiated residential credit platform combining deep investment expertise with scaled proprietary sourcing and securitisation capabilities,” said Naïm Abou-Jaoudé, chief executive of NYLIM.

“These are difficult capabilities to replicate and highly complementary to New York Life’s permanent capital and NYLIM’s institutional franchise.”

NYLIM is the $837.6bn global asset management arm of New York Life Insurance Company. The firms said the deal means Invictus will now benefit from capital commitments from the insurer.

New York Life’s general account will also gain a new source of proprietary residential mortgage assets and access to Invictus’s sourcing and securitisation capabilities as part of the transaction.

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Invictus has acquired more than $48bn of residential loans over the past decade and completed more than 90 securitisations in the US residential mortgage-backed securities market.

“We see significant opportunity in a growing US single-family residential credit market, where strong fundamentals and structural inefficiencies continue to create attractive investment opportunities,” said Michael Warden, chief executive of Invictus.

“Together, we are well positioned to grow the business and serve a broader range of institutional investors.”

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