Companies Partner To Bring More Mortgage-Backed Securities To Market

Canyon Partners (“Canyon”), a $28 billion global alternative investment manager, announced a strategic partnership with A&D Mortgage (“A&D”), a wholesale non-agency lender, and Imperial Fund Asset Management (“Imperial”), an asset manager specializing in residential mortgages. As part of this collaboration, Canyon will commit $250 million, which will be used by A&D and Imperial to enable approximately $5 billion of non-agency securitizations, leveraging Imperial’s expertise in structuring and executing these transactions with mortgage collateral originated and serviced by A&D.

The partnership aims to accelerate A&D’s and Imperial’s established securitization program and will offer investors access to diversified pools of high-quality mortgage-backed securities. This initiative is further strengthened by A&D’s existing joint venture with Bob Diamond’s and David Schamis’ global investment firm Atlas Merchant Capital LLC (“Atlas”), which was announced in September 2024 and enhances the group’s collective strategic capabilities and market reach.

The partnership is designed to capitalize on the robust and growing demand for non-agency mortgage products, which focuses on a vital segment of borrowers. Recognized for its efficient origination platform and a comprehensive non-agency product suite, A&D will serve as the primary source of high-quality collateral for securitizations. Imperial, a programmatic issuer of non-agency residential mortgage-backed securities has executed 25 securitizations since 2020 and brings a diversified and growing investor base, applying its deep expertise in this market to oversee the structuring, management, and distribution of these securitized pools.

A&D has had a successful track record of originating high-quality mortgage assets since its founding in 2005 and has demonstrated a history of exceptional growth. A&D originated over $3 billion loans in 2024, and its market position has been significantly enhanced by its recently announced acquisition of Flagstar Bank’s wholesale origination business from mortgage servicer Mr. Cooper Group Inc. The Flagstar transaction further accelerates A&D’s origination capabilities and expands its market share and geographic reach in the non-agency sector. This strategic expansion positions A&D to deliver an even greater volume of mortgage collateral for future securitizations.

“We are thrilled to partner with A&D, Imperial and Atlas Merchant Capital, each highly respected and innovative firms within the mortgage, structured finance and financial services sectors,” said Adam Rizkalla, Managing Director at Canyon Partners. “We have been investors in this sector for many years, and believe they are among the best-in-class.  Our commitment underscores our confidence in the significant growth potential of the non-agency mortgage market. We believe this is a compelling environment to put capital to work in this asset class, and the combined strength of this partnership will deliver attractive returns while also contributing to greater stability and accessibility in the housing market.”

Max Slyusarchuk, CEO of A&D Mortgage and Co-Founder of Imperial Fund Asset Management, commented, “This significant commitment from Canyon is a powerful testament to the quality of our non-agency originations and our disciplined, borrower-centric approach to lending. Our strategic partnership with Atlas has already amplified our capabilities, and this new collaboration with Canyon and Imperial will enable A&D to further expand our reach and continue providing innovative and flexible mortgage solutions to a diverse range of borrowers as we continue to grow our business. We eagerly anticipate a highly successful and synergistic collaboration with all our partners.”

Bob Diamond, Co-Founder and CEO of Atlas Merchant Capital added, “I have known Canyon’s Co-Founder and Co-CEO, Josh Friedman, and the firm for many years and have been incredibly impressed both with the organization that has been built and their longevity as a firm.  I could not think of a better partner at this point in A&D and Imperial’s lifecycle.  Similarly, Max and his team have built a phenomenal business at A&D and Imperial with tremendous opportunities ahead. We believe the non-agency market is an important component of the residential mortgage landscape and A&D is perfectly positioned to capitalize on its growth, and we are excited to further the partnership in the years ahead.”

The partnership is expected to commence immediately, with the initial securitization transactions anticipated to launch in the coming weeks.

ATLAS SP Partners, the warehouse finance and securitized products platform majority-owned by Apollo funds, served as exclusive financial advisor to Imperial and Atlas Merchant Capital in connection with the transaction. ATLAS SP Partners provides tailored advisory and financing solutions to clients across the structured credit landscape.