SKW Funding (SKW), a private lending and distressed debt platform, and Bain Capital Credit have formed a second joint venture that will target special situation loan originations as well as sub- and non-performing note acquisitions.
The joint venture will target an additional $1.3 billion of acquisitions and loan originations over the next several years.
Concurrently, the joint venture announced its first acquisition, a $42 million note purchase secured by an office building portfolio in Austin, Texas which was followed shortly thereafter by a $410 million loan origination secured by the office building located at 111 Wall Street in New York, NY. As part of the origination, SKW and Bain Capital provided mezzanine debt financing.
The new platform comes on the heels of the successful origination of nine deals between SKW and Bain Capital in their first joint venture, which was formed in July 2019. The joint venture will continue to seek opportunities nationally, with a focus on acquisitions in the greater New York City market.
SKW Funding and Bain Capital Credit will also target special situation loan originations including mezzanine and preferred equity investments.
“We are pleased to be expanding upon our relationship and a very successful first joint venture with Bain Capital,” said Daniel Wrublin and Ayush Kapahi, Principals and Co-Founders of SKW Funding. “Given the current dislocations in the market, we anticipate that we will continue to find very attractive investment opportunities in the debt space.”
“We continue to find excellent relative value in debt opportunities in the New York City market and other core geographies, particularly in COVID-impacted asset classes like office space,” added David DesPrez, a Director at Bain Capital Credit. “We are excited to expand our relationship with the entire SKW team and look forward to continuing to leverage our unique capabilities to capitalize on attractive opportunities.”
Image top: Tagger Yancey, NYCGo