Rice Park Capital Management Closes On $300M Commitment For Its MSR Strategy
Rice Park Capital Management LP, a Minneapolis-based investment firm, has closed on a $300 million capital commitment from M&G Investments for its inaugural mortgage servicing rights (MSR) fund. Rice Park is targeting $600 million in total capital commitments for its MSR strategy in 2022.
“We are extremely pleased to have M&G as the anchor strategic investor in our MSR strategy. Finding the right equity capital is a key ingredient for Rice Park to build a large scale and durable MSR investing business, and we have that with M&G. The initial $300 million of equity gives us the capacity to purchase approximately $70 billion of MSRs,” said Nick Smith, Rice Park founder, CEO and Co-CIO. “As a result of our management team’s industry relationships, we’ve already begun cultivating MSR investment opportunities within our network of origination and sub-servicing partners. We look forward to building deep relationships with these partners and expanding our presence in the market over time.”
“MSRs represent a $120 billion market opportunity that is difficult to access for most investors. Rice Park believes it is well positioned within the market at an attractive time in the rates cycle,” said Matt Kennedy, Rice Park Co-CIO.
Thierry Masson, M&G Head of Origination – Americas, said: “Through our partnership with Rice Park, we’re excited to provide liquidity to MSR holders, supporting the US mortgage market and homeownership, and do so by partnering with best-in-class originators and sub-servicers for the benefit of borrowers. Rice Park’s expertise in MSR and more broadly residential mortgage products will enable our clients to access a large market in a prudent way.”
Morgan Stanley served as the placement agent for the MSR fund.
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