Fidelis Investors Launches Inaugural Rated RTL Securitization

Yahoo

21-02-2025

New offering provides institutional investors a transparent, standardized avenue to finance housing rehabilitation, as U.S. housing shortage continues.
NEW YORK, February 21, 2025--(BUSINESS WIRE)--Fidelis Investors, a leading alternative asset manager with more than $1 billion in assets under management, announced today the closing of its first-ever rated residential transition loan (RTL) securitization, FID 2025 RTL1. This inaugural transaction provides institutional investors critical access to housing rehabilitation financing and underscores the firm's leadership in the maturation of the RTL market.
Rated by Morningstar DBRS, FID 2025 RTL1 includes 435 loans – approximately $150 million in current principal balance – that finance the rehabilitation of 517 housing units, offering institutional investors a transparent, standardized avenue to support housing rehabilitation projects. This securitization reflects Fidelis' focus on addressing the U.S. housing supply deficit and marks the culmination of the firm's longstanding efforts in establishing a secondary market for RTL loans – supporting the growth of the market from a fragmented niche to an institutionalized asset class.
"This securitization is the next evolution of our forward-thinking approach to the RTL market," said Brian Tortorella, Managing Partner of Fidelis Investors. "We've been working to build this market since 2013, creating liquidity through loan purchases and warehouse lines and playing an integral role in establishing the first secondary market for RTL loans. As this inaugural transaction closes today, the Fidelis team extends our gratitude to the investors and partners who have supported our work and our platform for more than a decade."
Fidelis was represented in this novel transaction by Mayer Brown LLP, a leading international law firm in the RTL space. Jefferies served as lead manager and bookrunner.
"Jefferies is very proud to assist Fidelis Investors on their inaugural RTL securitization. We are pleased to support the company through this significant milestone of their corporate history with their entrance into the rated public capital markets," said Christopher Schmidt, Managing Director at Jefferies. "We look forward to working together on many future successful transactions in the coming months and years ahead."
The securitization is structured to address the growing demand among institutional investors for high-quality, fixed-income investment opportunities, while addressing the U.S.'s aging housing stock and limited inventory. Rated RTL securitizations provide a means to expand investor access to this critical sector when the U.S. faces a housing deficit of between 2-5 million units — bringing transparency and scalability to an asset class vital to housing rehabilitation and supply shortage.
"As the RTL market matures, Fidelis remains committed to innovation – connecting institutional capital to housing solutions with enhanced transparency, liquidity, and standardization," said Michael Tessitore, Managing Partner of Fidelis Investors. "This rated securitization is the culmination of our work in the RTL sector and reflects our readiness as a firm to lead in its next growth phase."
Since the Fidelis management team entered the RTL market more than a decade ago while at Five Mile Capital Partners, they have invested $4.5 billion in housing and structured finance solutions, providing much-needed liquidity to the housing market. By partnering with local lenders, Fidelis has played a key role in building a secondary market where none existed, helping create a framework for housing rehabilitation financing. This transaction builds on that legacy, bringing institutional capital to a critical segment of the housing market while continuing to drive the industry forward.
About Fidelis Investors
Founded in 2020, Fidelis Investors is an alternative asset manager with more than $1 billion in assets under management across seven investment vehicles. Backed by strong governance and transparent practices, the firm specializes in mortgage debt products, structured finance, asset-based lending, and real estate, having invested approximately $4.5 billion in 16 Mortgage & Real Estate Debt Funds. Fidelis is committed to realizing long-term growth alongside its investors, which include highly respected endowments, foundations, insurance companies, and hedge funds.
About Jefferies
Jefferies is a leading global, full-service investment banking and capital markets firm that provides advisory, sales and trading, research and wealth and asset management services. With more than 49 offices in 23 countries around the world, we offer insights and expertise to investors, companies and governments.
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