Trimont Signs Definitive Agreement to Acquire Wells Fargo Non-Agency Third-Party Commercial Mortgage Servicing Business
20 August 2024 - 11:16PM
Trimont, the leading global commercial real estate loan services
provider, has entered into a definitive agreement to purchase Wells
Fargo’s non-agency third-party Commercial Mortgage Servicing (CMS)
business, the largest servicer of CRE securitized debt in the U.S.
The transaction, backed by Värde Partners, positions Trimont as the
largest loan servicer, managing a combined $640 billion of loans in
the United States, equivalent to approximately 11% of the U.S.
commercial real estate lending market.
A leader in complex non-bank credit servicing, Trimont primarily
serves non-bank and alternative lenders, while CMS specializes in
securitized debt products including CMBS conduit, SASB, CLOs, and
Freddie Mac K-series. This acquisition enables Trimont to offer
comprehensive servicing across all non-bank commercial real estate
lending structures, including Master Servicing.
“Trimont and Wells Fargo’s Commercial Mortgage Servicing are
recognized experts in their respective areas of concentration. 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,” said Bill
Sexton, CEO of Trimont. “We look forward to welcoming the team from
Wells Fargo, and working with them to capitalize on our strengths
as we continue to deliver superior service and value to the clients
of both businesses.”
Funding for the transaction will be provided by Värde Partners,
a global alternative investment firm, which acquired and has owned
Trimont through certain funds since 2015. Värde has over a decade
of experience owning and developing real estate servicing platforms
and is committed to its long-term investment in Trimont.
“The addition of Wells Fargo’s Commercial Mortgage Servicing
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.”
“This transaction is consistent with Wells Fargo’s strategy of
focusing on businesses that are core to our consumer and corporate
clients,” said Kara McShane, Executive Vice President, and head of
Wells Fargo Commercial Real Estate. “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.”
The transaction is subject to customary closing conditions and
is expected to be finalized in early 2025. Post-closing, Trimont
will manage more than $715 billion in U.S. and international
commercial real estate loans.
J.P. Morgan Securities LLC served as financial advisor with
Goldman Sachs & Co. LLC providing additional advisory services
while Kirkland & Ellis, Cadwalader, Wickersham & Taft LLP,
and Trilegal served as legal advisors to Trimont and Värde
Partners.
About Trimont LLCTrimont (www.trimont.com) is a
specialized global commercial real estate loan services provider
and partner for lenders seeking the infrastructure and capabilities
needed to help them scale their business and make informed,
effective decisions related to the deployment, management and
administration of commercial real estate secured credit.
Data-driven, collaborative and focused on commercial real
estate, Trimont brings a distinctive mix of intelligent loan
analysis, responsive communications, and unmatched administrative
capabilities to clients seeking cost-effective solutions at
scale.
Founded in 1988 and headquartered in Atlanta, Trimont’s team of
400+ employees serves a global client base from offices in Atlanta,
Dallas, Kansas City, London, New York and Sydney. The firm
currently has USD 240B in loans under management and serves clients
with assets in 72 countries.
About Värde PartnersVärde Partners is a leading
global alternative investment firm specializing in credit and
credit-related assets. Founded in 1993, the firm has invested more
than $100 billion across the credit quality and liquidity spectrum
in both public and private markets. Värde currently manages over
$13 billion in assets with teams in North America, Europe, and Asia
Pacific focused on Corporate & Traded Credit, Real Estate, and
Financial Services & Diversified Private Credit. For more
information, please visit www.varde.com.
About Wells FargoWells Fargo & Company
(NYSE: WFC) is a leading financial services company that has
approximately $1.9 trillion in assets. We provide a diversified set
of banking, investment and mortgage products and services, as well
as consumer and commercial finance, through our four reportable
operating segments: Consumer Banking and Lending, Commercial
Banking, Corporate and Investment Banking, and Wealth &
Investment Management. Wells Fargo ranked No. 34 on Fortune’s 2024
rankings of America’s largest corporations. In the communities we
serve, the company focuses its social impact on building a
sustainable, inclusive future for all by supporting housing
affordability, small business growth, financial health, and a
low-carbon economy.
For additional information, please contact:Lauren
HolmesExecutive Director, Marketing and Public RelationsTrimont+1
404 581 7409lholmes@trimont.com
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