BREA,
Calif., April 24, 2024 /PRNewswire/ -- AmWest
Funding Corporation ("AmWest"), funds managed by Ares Management
Corporation's (NYSE:ARES) ("Ares") Alternative Credit strategy, and
Park Capital Management ("Park Capital") announced today that
AmWest and Ares have finalized a joint venture to purchase and
invest in Non-QM loans, sourced and serviced by AmWest. The joint
venture will seek to capitalize on AmWest's strong position as a
leading mortgage originator and servicer with over $15 billion of Non-QM mortgage originations since
inception, primarily sourced via its national wholesale
platform.
"We are pleased to enter into this partnership with Ares, which
will allow us to grow our business and further capitalize on the
current market environment," said William
Park, Founder and Chairman of AmWest. "We pride ourselves in
the trusted brand that we have built and look forward to continuing
to support mortgage brokers and homebuyers with exceptional
products and service."
"Our partnership with Ares is a testament to the confidence we
have in our operating platform and our strategy of building and
developing Park Capital Management," said Kenneth Jo, Chief Executive Officer of AmWest.
"We look forward to working with the Ares team to source and
securitize attractive residential mortgage investments together in
the years ahead."
Ares will provide 90% of the joint venture's capital with AmWest
providing the remaining 10%. This collaboration is expected to
benefit from the experience of AmWest and Ares' leadership teams
alongside a successful track record of building large-scale Non-QM
investment and securitization platforms. AmWest has securitized a
combined $3.1 billion in unpaid
principal balance in the last 3 years. The joint venture will seek
to securitize the mortgage loans using the HOMES and PRKCM
shelves.
"This partnership furthers Ares' evolution as an important
player in the residential mortgage space," said Kevin Alexander, Partner in the Ares Credit
Group "AmWest's ability to originate and service superior mortgage
assets is a perfect fit for Ares' Alternative Credit's
mandate."
The Ares Alternative Credit strategy is one of the largest
investors in asset based credit managing approximately $33.9 billion in assets under management as of
December 31, 2023. The team invests
across the capital structure and seeks opportunities in specialty
finance, lender finance, loan portfolios, equipment leasing,
structured products, net lease, cash flow streams (royalties,
licensing, management fees) and other asset-focused
investments.
"As a platform that is invested across the mortgage space from
multiple pockets of capital, Ares was able to provide a solution
that fit AmWest to grow their business," said Michael Flynn, Managing Director in the Ares
Credit Group. "Both Ares and AmWest are focused on building this
partnership to source assets with strong credit quality that will
ultimately lead to successful securitization platforms."
ATLAS SP Partners served as sole financial advisor and Mayer
Brown LLP served as legal counsel to both AmWest and Park Capital
in connection with the transaction.
About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global
alternative investment manager offering clients complementary
primary and secondary investment solutions across the credit,
private equity, real estate and infrastructure asset classes. We
seek to provide flexible capital to support businesses and create
value for our stakeholders and within our communities. By
collaborating across our investment groups, we aim to generate
consistent and attractive investment returns throughout market
cycles. As of December 31, 2023, Ares
Management Corporation's global platform had approximately
$419 billion of assets under
management with approximately 2,850 employees operating across
North America, Europe, Asia
Pacific and the Middle
East. For more information, please visit
www.aresmgmt.com.
About AmWest Funding Corporation
AmWest Funding Corporation, based in Brea, California, was originally founded in
1995. The company originates Federal Housing Administration (FHA),
Veterans Administration, USDA, and conventional conforming
residential mortgage loans that adhere to the standards established
by the government-sponsored enterprises (Fannie Mae, Freddie Mac,
and Ginnie Mae), as well as
government agency, prime jumbo, and Non-QM loans. The organization
is driven by a management team possessing an average of two decades
of experience. Focused on providing home loans responsibly
throughout the communities we serve, AmWest's goal is to provide
exceptional customer experience for its clients. AmWest helps
clients achieve the dream of home ownership or seize today's real
estate investment opportunities. For more information on AmWest
Funding Corp., visit www.amwestfunding.com.
About Park Capital Management
Park Capital Management is an affiliate of AmWest Funding
Corporation. The Company invests in residential mortgage loans and
has expertise in capital markets execution.
Contact
Kenneth Jo
(714) 831-3333
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SOURCE AmWest Funding Corporation