Oaktree funds Arixa Capital to meet real estate financing demands » World Business Outlook

Arixa Capital (“Arixa”) announces the expansion of its joint venture with funds managed by Oaktree Capital Management, LP (“Oaktree”) to issue senior secured loans backed by residential real estate.

Launched in August 2023 with an initial commitment of $100 million, this strategic partnership responds to the growing demand for real estate financing amid a market downturn from banks and private lenders. To meet this demand, Arixa and Oaktree are committing an additional $100 million, with the option to leverage these funds through a structured credit facility to help improve returns and increase deployment capacity.

“Our focus on reliable access to capital, rapid execution and exceptional client service has driven significant deal flow, with our pipeline at its highest level to date,” said Seth Davis, Managing Director of Arixa Capital. “With Oaktree’s support, Arixa can expand its ability to serve highly experienced and financially strong clients who are seeking reliable alternatives to regional and community banking.”

“Arixa Capital has proven to be a trusted partner for Oaktree over the past year, strategically deploying capital, maintaining strong credit quality and generating attractive returns,” said Jason Keller, Managing Director and Head of Residential Investments for Oaktree Real Estate Group. “We are excited to expand our engagement in this joint venture and support the growth of Arixa’s lending program.

Arixa Capital was founded in 2006 and offers short-term senior secured loans for the acquisition, renovation and/or construction of investment properties. Arixa has originated more than $4 billion in loans since its inception and is well positioned to capitalize on the multi-billion dollar financing gap in residential real estate financing, exacerbated by current credit market disruptions.

“We are excited to deepen our partnership with Oaktree and support our growing customer base,” said Gregory Hebner, Managing Director of Arixa Capital. “Our mission is to support exceptional real estate investors, developers and builders who create substantial value with their investment projects and enable Arixa to consistently deliver attractive returns to our investors, even in this volatile mortgage rate environment. interest.

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