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Prudential Mortgage Capital, Perella Weinberg Partners affiliate create commercial mortgage joint venture

^{Published on 2011-07-09 07:50:48 - Market Wire}
 

NEWARK, N.J. & NEW YORK--([ BUSINESS WIRE ])--Prudential Mortgage Capital Company and affiliated funds of Perella Weinberg Partnersa™ Asset Based Value strategy have formed a joint venture to originate commercial mortgages for future securitization, the companies announced today. [ Prudential Mortgage Capital Company ] is the commercial mortgage lending business of Prudential Financial, Inc. (NYSE: PRU).

"We are excited to be working with the well-respected team at Prudential Mortgage Capital Company to develop and expand the business and to position the joint venture as a leader in the commercial real estate finance space"

The joint venture combines Prudential Mortgage Capital Companya™s strong credit culture and finance expertise with Perella Weinberg Partnersa™ Asset Based Value strategya™s real estate lending and principal investing experience. Loans will be originated through Prudential Mortgage Capital Companya™s origination platform, then warehoused and securitized by the joint venture, and serviced by Prudential Asset Resources, one of the largest commercial/multifamily servicers in the industry.

The new venture enables Prudential Mortgage Capital Company to provide its borrowers with access to the commercial mortgage backed securities market without creating a new CMBS warehouse, following the divestiture of Prudentiala™s commercial mortgage securitization business in 2008.

The joint venture, which is structured to adapt to potential regulatory changes, is initially targeting more than $1 billion a year in fixed rate mortgages for stabilized commercial properties across all asset classes.The venture will create a branded vehicle and partner with third parties to issue commercial mortgage backed securities. The joint venture is accepting applications through Prudential Mortgage Capital Company loan officers, effective immediately.

aParticipation in the re-emerging CMBS market is critical to maintaining our leadership position in the commercial mortgage arena,a said David Twardock, president of Prudential Mortgage Capital Company. aThis is an excellent opportunity to leverage our national origination network and expand the financing options we provide for our borrowers. We are proud of our relationship with Perella Weinberg and look forward to working with them through this joint venture to better meet our clientsa™ needs.a

Said David Schiff, partner at Perella Weinberg Partners and portfolio manager of the Asset Based Value strategy, aTodaya™s announcement reflects our continued commitment to partnering with proven teams and businesses to provide specialty finance solutions to underserved capital markets. This joint venture, which unites two like-minded credit cultures, will leverage each entitya™s core competencies to bring additional liquidity to borrowers and high-quality securities, secured by conservative underwriting on quality assets, to bond investors.

aWe are excited to be working with the well-respected team at Prudential Mortgage Capital Company to develop and expand the business and to position the joint venture as a leader in the commercial real estate finance space,a Schiff added.

The joint venture will be led by Richard Flohr, Sean Beggan and Jean Baker at Prudential Mortgage Capital Company, along with David Schiff, Billy Jacobs and Roger Nussenblatt of the Perella Weinberg Partnersa™ Asset Based Value strategy. This team brings a wealth of commercial real estate industry experience.

Perella Weinberg Partnersa™ Asset Based Value strategy is a leading post-financial crisis provider of U.S. specialty finance solutions. Since inception in 2008, the strategy has grown to manage in excess of $1 billion in equity capital through a number of different investment vehicles. It can deliver significant capital, technical expertise and infrastructure in a wide range of asset classes and structures, including both real and financial assets. The strategy strives to diligence and execute transactions discretely and efficiently. Capital for the strategy is contributed by, among others, a diversified group of institutional investors who seek to invest in compelling opportunities at favorable valuations.

Perella Weinberg Partners is a leading independent, client-focused financial services firm providing corporate advisory and asset management services to a broad, global client base, including corporations, institutions and governments. The Corporate Advisory business advises clients on mergers, acquisitions, defense advisory, financial restructuring, private capital raising and pension matters. The Asset Management business includes a suite of hedge fund strategies, private investment funds (including real estate) and outsourced investment office solutions. Including affiliates, the Asset Management business has capital commitments and managed assets of more than $8.0 billion. With approximately 350 employees, Perella Weinberg Partners maintains offices in New York, London, Abu Dhabi, Denver, Austin, and San Francisco. For more information on Perella Weinberg Partners, please visit [ http://www.pwpartners.com ].

Prudential Mortgage Capital Company is a national full-service, commercial and multifamily mortgage finance business with $65.6 billion in assets under management and administration as of March 31, 2011. Leveraging a 135-year history of real estate finance, the company offers one of the most comprehensive lines of real estate finance products and originates loans for Fannie Mae DUS®, Freddie Mac Program Plus® and specialized affordable housing programs; FHA; Prudentiala™s general account and proprietary balance sheet program; and other institutional investors. The company maintains a loan servicing portfolio of approximately $66.4 billion, as of March 31, 2011. For more information, please visit [ http://www.prumortgagecapital.com ].

Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $859 billion of assets under management as of March 31, 2011, has operations in the United States, Asia, Europe, and Latin America. Prudentiala™s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. In the U.S., Prudentiala™s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit [ http://www.news.prudential.com/ ].