JV Will Support The Expansion Of A&D’s $7 Billion Mortgage Securitization Platform

Atlas Merchant Capital LLC (“Atlas”), a global alternative investment firm based in New York and London, A&D Mortgage, LLC (“A&D”), a nationwide wholesale lender, and Imperial Fund Asset Management (“Imperial”), a residential mortgage investment manager and a capital markets advisor, announced a joint venture partnership (“JV”) between A&D Mortgage and Atlas Merchant Capital that will support the expansion of A&D’s $7 billion mortgage securitization platform.

The JV, which will draw from a combination of internal and third-party capital, will purchase mortgage loans originated and serviced by A&D and other lenders with the goal of securitizing them, while investing across a range of securities in the sponsored transactions.

“Atlas Merchant Capital has sought ways to capitalize on the dislocation in the mortgage market caused by the rapid rise of interest rates throughout the last few years and we are thrilled to be partnering with A&D, a best-in-class lender, to execute on this opportunity,” said Bob Diamond, co-founder and chief executive officer at Atlas Merchant Capital. “The timing of this partnership could not be better as the tone in the mortgage market has been improving, which would provide a large tailwind for this asset class.”

A&D is a vertically integrated, national lender-servicer focused on the prime, non-Agency mortgage segment, with over $10 billion in originations since 2020 and a servicing portfolio exceeding $8 billion. A&D sources its production primarily through a nationwide wholesale network.

“Atlas Merchant Capital is an ideal partner to help us take our business to the next level,” said Max Slyusarchuk, founder and chief executive officer at A&D Mortgage. “Over the past two decades, we’ve expanded our operation to become the top non-agency mortgage lender nationwide. Our JV partnership with Atlas will accelerate A&D’s growth and our mission of helping more Americans achieve their dream of homeownership.”

On August 26, 2024, the JV launched a new securitized products investment fund and closed its first sponsored residential mortgage-backed securities (“RMBS”) deal with $370 million of mortgage collateral sourced from A&D. The deal was rated by S&P Global and Kroll Bond Rating Agency.

“This marks our 21st transaction, but the most recent deal is especially significant for our team because it is the first one completed with our partners at Atlas Merchant Capital. Now, more investors will gain access to top-tier fixed income products backed by the strongest foundation—U.S. residential mortgages,” said Victor Kuznetsov, co-founder and managing director of Imperial.

Atlas Merchant Capital, with its deep expertise in the financial services investment sector, will play an active role in the management of the mortgage investment strategy.

“Opportunities for private credit in the residential mortgage sector have continued to grow as commercial banks have increasingly divested these loans from their balance sheets. A&D is the ideal partner for us to align with to take advantage of the tremendous growth and opportunities that lie ahead,” said David Schamis, co-founder and chief investment officer at Atlas Marchant Capital.