Cleveland VC Firm Invests in Mortgage Banker

Evolution Partners of Cleveland has made an equity investment in American Eagle Mortgage, a non-bank retail funder that bills itself as the "fastest growing" home mortgage lender in Ohio. "It's our first investment in mortgage banking," said Brendan Anderson, a managing partner in Evolution. He declined to say how large of a stake his venture capital firm obtained but said its plan is to keep the investment for "five or six years, but we're prepared to go longer if we have to." American Eagle is a small non-depository that is currently originating $150 million a year in home mortgages. "With our capital we see them doubling or tripling their business," said Mr. Anderson. He noted that American Eagle has plans to expand its sales team. "This is a firm that stuck to its knitting during the subprime boom and stayed in conventional and FHA. They didn't go crazy like everyone else did." American Eagle was formed by John Schrenkel and Dave Berry in 2001. They serve as president/CEO, and senior vice president, respectively. Both men have an ownership stake as well.