Lancewood Capital recently closed over $100 million of new credit facilities for alternative real estate lenders as the family office begins to fill the void created among banks exiting the lender finance space.
The Greenwich-based firm has emerged as a sizeable provider of senior financing to alternative real estate lenders transacting in the $1-50 million space. The firm provides both revolving credit facilities and one-off note-on-note financing for lenders.
In the past 90-days, Lancewood has closed a $45 million credit facility for a NY-based lender, a $20 million credit facility for a FL-based lender, a 25 million credit facility for a CA-based real estate lender, and a $11 million note financing for a CA-based lender.
Vice President of Real Estate Justin Godner said, “The disruption in both the credit and equity markets and more specifically in the banking sector in the latter part of 2022 into 2023, has allowed our family office to execute for borrowers at a time when many could not. This execution and earned trust allowed for us to develop many new lender finance relationships that we will have for a long time.”
The platform was created to provide alternative real estate lenders with flexible and competitively-priced leverage that provides the lender with certainty of execution. The firm’s capital structure allows them to be as competitive, if not more competitive than many of the banks who provide leverage to lenders.
Lancewood Capital expects to be increasingly more active in the second half of 2023. When asked about market outlook, Director of Credit Tino Martins said, “There will be an increase in demand for flexible, competitive and reliable financing in today’s challenging credit markets and Lancewood Capital’s team and platform are looking forward to continued growth while providing borrowers with industry-leading execution and reliability in a turbulent environment.
Lancewood Capital, founded in 2014 by a Greenwich, CT-based family office, has become increasingly more active in the first lien real estate credit space. The company was founded by the family office to produce safe risk-adjusted returns for capital generated from other businesses ventures. The partners of the family office own various other specialty finance businesses that they have successfully owned for several decades.
Unlike many of its competitors, Lancewood Capital is fully capitalized by the family office. The firm’s patient and stable capital source provides increased flexibility, competitive pricing, and unparalleled execution for prospective borrowers. The firm is exclusively focused on senior first lien mortgage opportunities within larger markets in New York, Florida, and California. Lancewood provides direct bridge loans to property owners as well as senior note financing to many alternative real estate lenders through the firm’s lender finance platform.
