Meridian Capital Group announced a partnership to create a new agency
David Brickman, who until recently served as CEO of the
Federal Home Loan Mortgage Corporation (Freddie Mac), will lead the platform as
its Chief Executive Officer.
Under the terms of
the agreement, the joint venture will acquire the assets and liabilities of
Barings Multifamily Capital, LLC, including its licenses to participate in
various lending programs, and operate the agency loan origination and servicing
businesses currently conducted by BMC under new ownership, leadership, and
The transaction is subject to federal government-sponsored enterprise (GSE) approvals and, pending those approvals, is expected to close immediately thereafter.
The newly created platform will be operated as a standalone
business under its own name and branding which will be announced prior to the
Meridian will own a majority of the newly created platform
and its ownership is subject to increase over time. Day-to-day management of
the platform will be assumed by the joint venture’s dedicated management team,
led by Brickman, and the joint venture will be governed by a board of directors
that is majority controlled by Meridian.
In addition to heading the new agency joint venture, Brickman
will assume the role of Executive Chairman of Meridian and Senior Advisor to
Stone Point Capital LLC. As Executive Chairman of Meridian, he will work
alongside Ralph Herzka, Meridian’s Chairman and Chief Executive Officer, and
Yoni Goodman, Meridian’s President, to chart the course of the firm, expand its
product offerings, and continue to grow Meridian on a national scale.
Brickman spent most of his career at Freddie Mac working in
and leading the Multifamily business, where he presided over an increase in
annual production from $16 billion in 2010 to almost $80 billion in 2018. He
also established the company’s flagship K-Deal securitization program as one of
the leading securitized products in the structured finance markets.
Meridian also announced today a strategic partnership with
investment funds managed by Stone Point Capital to fuel the company’s continued
growth as it enters a new phase of product and geographic expansion.
The agency lending partnership with Barings, the addition of Brickman, and the strategic partnership with Stone Point Capital come at a pivotal time in Meridian’s 30-year history. Over the coming years, Meridian will be focused on developing its new agency lending joint venture, growing its core mortgage brokerage business significantly on a national scale, expanding its investment sales and retail leasing products to key markets nationally, and growing other lines of business.
“We are thrilled to be embarking on this new
chapter,” said Ralph Herzka, Chairman and CEO of Meridian Capital Group.
“Our partnership with Barings will enable us to join forces with one of
the world’s leading asset managers and reintroduce Meridian to the direct agency
lending arena. The addition of David Brickman to our executive team will mean
that we are working alongside one of the most prominent multifamily experts in
the country. David did not just preside over a remarkable period of expansion
at Freddie Mac; he did so through the type of innovation, creativity and
ingenuity that are critical to thriving in today’s marketplace.”
Yoni Goodman, Meridian’s President, added, “Working
towards our goals with Stone Point Capital as a partner means that we will have
the resources, touchpoints, and perspective to realize the grand vision we have
for Meridian. Ralph and I welcome Mr. Brickman, Barings, and Stone Point
Capital to the Meridian family.”
Commenting on the agency lending partnership, Eric Lloyd,
Head of Global Private Assets at Barings said, “Barings continues to build
out its real estate debt capabilities, and our joint venture with Meridian
extends our reach to a much broader market. This includes markets that
complement our existing institutional commercial mortgage lending
Chuck Davis, CEO of Stone Point Capital, added, “We are
excited to be partnering with Meridian as it enters into a new phase of growth
and development. We believe Meridian is uniquely positioned to grow its core
business and expand into new business lines, and we look forward to partnering
with the team to help them achieve these goals and more.”
Subject to regulatory approval, the agency lending joint
venture will, through a wholly owned subsidiary, participate in the Federal
National Mortgage Association (Fannie Mae) DUS program, the Federal Home Loan
Mortgage Corporation (Freddie Mac) Optigo network, and Federal Housing
Administration/Government National Mortgage Association (FHA/GNMA-Ginnie Mae)
multifamily lending programs.
In addition, the new business will service commercial and
multifamily loans for Barings’ parent company MassMutual and other lenders.
Meridian will originate multifamily loans on behalf of the
venture on a non-exclusive basis, and will continue to originate for various
banks, agency lenders, and financing sources as it has in the past.
BofA Securities is serving as exclusive financial advisor to
Barings in connection with the agency lending partnership with Meridian.
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