Global investment manager Schroders has taken a 20% equity investment in, and provided financing in connection with the recapitalisation of, A10 Capital, a full-service commercial real estate (CRE) lending organisation specialising in mid-market CRE loans, including bridge and permanent loans. Schroders’ investment is being made alongside an investment by Gemspring Capital, a middle market private equity firm based in Westport, Connecticut.
Concurrent with the investment, Schroders and A10 have entered into an agreement through which Schroders will benefit from A10’s extensive origination network and servicing platform to access mid-market CRE loan opportunities for its clients. The agreement also provides A10 with the opportunity to significantly diversify its balance sheet funding model. Karl Dasher, CEO – North America and co-head of Fixed Income, at Schroders says, “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.”
The two firms have a five-year history of collaboration and this new relationship deepens the commitment by Schroders to provide client capital to this market segment. The portfolio management process will be overseen by Schroders’ New York-based securitised credit team, led by Michelle Russell-Dowe, head of securitised credit with Jeff Williams, fixed income fund manager, serving as lead portfolio manager for this initiative.
Jerry Dunn, CEO of A10, adds, “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.”
Broadhaven Capital Partners acted as financial advisor to Schroders in connection with the transaction, and Sidley Austin LLP acted as Schroders’ legal counsel.
Founded in 2007, A10 Capital is based in the United States with origination offices in key markets and principal offices in Boise, Idaho and Dallas, Texas.