eRESI Capital – a mortgage funding platform that offers comprehensive private capital solutions to the residential mortgage market – announced that it has secured a new investment from insurance accounts managed by KKR. These insurance accounts had initially invested in eRESI in 2021.
The additional funding is expected to help the Company reach new origination milestones and drive further innovation, excellence, and customer value.
Launched in 2019, eRESI offers customized products and liquidity solutions to hundreds of mortgage banking partners. With the support of KKR’s High-Grade Asset-Based Finance (ABF) strategy, eRESI has provided over $10 billion in residential loan funding. This new commitment is expected to help broaden eRESI’s funding capabilities and operational capacity to capture market share and increase customer liquidity.
KKR’s ABF strategy focuses on investment-grade and investment-grade-like financings and whole loan purchases. Through access to proprietary sourcing and privately negotiated structures, this strategy can provide attractive excess returns over corporate investment-grade exposure with similar risk. Plus, KKR’s ABF platform began investing in 2016 and now has approximately $66 billion in ABF assets under management globally across its High-Grade ABF and Opportunistic ABF strategies.
KEY QUOTES:
“With KKR’s support, we have achieved remarkable goals, and we look forward to accomplishing even more in the future. Our best-in-class platform empowers us to deliver exceptional products and services to our customers and partners and this commitment will continue to drive our growth and strengthen our market-leading position.”
– Gregory Tsang, Chief Executive Officer and Tim Wang, President of eRESI
“We are pleased to support eRESI’s growth through our High-Grade Asset-Based Finance strategy and look forward to deepening our commitment to the company, which plays a key role in expanding access to financing options in the mortgage market.”
– Avi Korn and Chris Mellia, global co-heads of Asset-Based Finance at KKR
