YellowFi signs a strategic joint venture with Leste Capital Group, an international asset management firm focused on alternative investments, that increases its capability, thus fuels more funding into the non-Qualified Mortgage (non-QM) market in the U.S. The joint venture will be funded by a $30M line of credit obtained from a European bank.
“We are very excited to embark on this partnership with Leste Capital Group,” said George Zac Zac, CEO of YellowFi. “This transaction proves that although we are living times of economic uncertainty, which is causing banks to be extra cautious, good projects and responsible business models are rewarded and continue to be funded.”
The line of credit was approved in part due to YellowFi’s positive track record and its loans’ performance. This shows industry confidence in the conservative credit and underwriting policies/practices implemented, as well the financial stability of the company.
Leste Capital Group was founded in 2014 by senior executives with robust experience in financial markets, corporations, real estate companies and law firms. The firm has offices in Miami, London, Rio de Janeiro and São Paulo.
“For us, this partnership is very powerful, as we are combining our ample experience in real estate investment with YellowFi's significant experience in the credit market, to leverage the great opportunities in the non-QM market,” said Emmanuel Hermann, CEO and Founder, Leste Capital Group.
The joint venture will help YellowFi fund and grow its portfolio by more than $37M, considering the equity portion required for the line of credit. “Above all, this transaction is an important step to advancing YellowFi's goal of reaching $200M a year in non-QM mortgage lending in the U.S.,” concluded Zac Zac.