Global investment manager Schroders has today announced that it has made a 20 per cent equity investment in A10 Capital, a full-service commercial real estate (CRE) lending organisation specialising in mid-market CRE loans.
It has also provided financing in connection with A10 Capital’s recapitalisation, alongside an investment by middle market private equity firm Gemspring Capital. Founded in 2007, A10 Capital provides bridge and permanent loans ranging from $1m to over $30m per commercial property, and offers origination, underwriting, in-house legal and servicing for the life of every loan.
Concurrent with today’s news, Schroders and A10 have entered into an agreement through which Schroders will benefit from A10’s origination network and servicing platform to access loan opportunities for its clients. The agreement also provides A10 with the opportunity to diversify its balance sheet funding model.
“This transaction further strengthens A10’s balance sheet,” said Jerry Dunn, CEO of A10. “ A10’s continuing on balance sheet loan programs combined with the opportunity, where mutually beneficial, to access funds and separate accounts managed by Schroders, greatly broadens our ability to serve our borrowers, building on our legacy as a thought leader in middle-market commercial real estate lending.”
The two firms have a five-year history of collaboration, and jointly see this new relationship as a deepening of their commitment to each other’s success.
Karl Dasher, CEO of Schroders in North America and co-head of fixed income, commented: “We are pleased to join Gemspring as a co-investor in the recapitailsation of A10 and to deepen our relationship with the team. A10 has established a technology driven platform with a strong credit culture that fits well with our investment and corporate culture.
“Their sourcing and servicing capability will play an important role in our effort to offer more private debt opportunities that meet the growing investor need for compelling fixed income returns while maintaining rigorous credit standards.”