Minneapolis-based global investment firm Castlelake LP has expanded an existing business relationship with Resfin Partners, adding dominant ownership of the company to its U.S. residential financing resources.
The purchase of a majority stake gives Castlelake more access to two Miami-based business units Resfin serves as a holding company for: Eastview, a domestic correspondent business, and Lendmarq, a direct lender to investors that works with brokers. Terms of the transaction were undisclosed.
Castlelake previously purchased $2 billion of Eastview and Lendmarq's loans for its funds and investment vehicles. It also has acquired loans made outside the qualified-mortgage definition through
"This investment strengthens our residential mortgage finance platform and deepens a relationship with Eastview and Lendmarq that is built on a strict, shared focus on asset quality and value," Lucas Jackson, head of North American Residential Mortgage Finance at Castlelake, said in a press release.
A long-term business partnership
Castlelake indicated in its press release that it would hold the stake in Resfin long-term as part of a broader strategy involving platforms that source loans. It currently holds ownership stakes in four platforms involved in specialty finance, including one involved in the aviation market.
The alternative investment firm's previous acquisitions from Eastview and Lendmarq have included
In total, Castlelake has purchased 4,000 senior structured loans from the two Resfin units through a business relationship that has spanned multiple years.
Resfin's other investor
Miami-based asset management firm Leste Group, which acquired and invested in Eastview and Lendmarq early on, remains an investor in Resfin.
"We believe that Castlelake's decision to deepen its commitment — moving from primary customer to majority shareholder — reflects institutional quality and growth trajectory that Leste sought to develop in both platforms," Leste Managing Partner Stephan de Sabrit said in a press release. "As a continued shareholder in Eastview and Lendmarq, Leste remains committed to supporting Resfin's long-term success."
Leste acquired Eastview and Lendmarq in 2020.
