Minneapolis-based private investment firm Rice Park Capital Management LP announced that its strategic equity investing team has closed RPC Ventures Fund II LP.
RPC Ventures offers capital to early-stage and mid-stage real estate and mortgage technology businesses that the team believes have the potential to transform and reshape their marketplace, have a path to profitability, and have the potential for a strategic exit.
Rice Park believes the mortgage market has the potential to undergo transformational change as origination costs have hit record highs over the past year. Since the industry is dependent on people in the origination process, Rice Park believes it is susceptible to the boom and busts of the cycle. With increasing innovations and AI, technology has the potential to play an increasingly major role in the mortgage process.
Last year, RPC Ventures launched an Advisory Board featuring individuals involved in businesses that are complementary to the types of sectors in which Rice Park invests in to help with market insight and support.
KEY QUOTES:
“We believe that our active approach to investing in sectors that we know are gaining attention and the successful closing of our second venture capital fund is a testament to what we are building. We feel this milestone highlights the growing interest of those who recognize the value of our strategic and hands-on method to investing. Rice Park’s investment strategies span the mortgage ecosystem, from origination and servicing to the capital markets. Because of our collective experiences as operators and investors, we believe that we have a unique and deep understanding of the mortgage ecosystem that allows us to be more value-add investors.”
– Nicholas Smith, CEO and Managing Partner at Rice Park
“We are continuing to see opportunities to bridge gaps between legacy technology systems with new technology and AI which we feel will provide significant cost savings, create alternative revenue streams, and bring data into decision making and interactions with customers, resulting in a better journey for the consumer.”
“Historically the mortgage industry has been slow to adopt tech solutions. But we believe that the integration of technology in the mortgage sector began accelerating post-COVID and will continue as Millennial and Gen Z homebuyers enter the market. Our commitment to helping innovative startups through the commercialization phase of growth remains a priority as we move forward, providing the essential support and resources needed for their success.”
– Chris Bixby, Managing Director of Strategic Equity Investing at Rice Park
