Flatiron Realty Capital and UBS O'Connor Form Co-Investment Strategy

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Oct 16, 2024, 17:36 ET

Janney Served as Sole Financial Advisor to Flatiron Realty Capital, LLC

NEW YORK, Oct. 16, 2024 /PRNewswire/ --

Transaction Overview

Flatiron Realty Capital and UBS O’Connor Form Co-Investment Strategy

Flatiron Realty Capital, LLC ("Flatiron") has announced the formation of a co-investment strategy focused on residential transition loans ("RTL") with O'Connor Capital Solutions ("OCS"), the private credit strategy within UBS O'Connor.

RTLs are short-term, 1^st lien business purpose loans on residential real estate used for renovation and / or construction.

The investment will enable Flatiron to capitalize on its robust pipeline and attractive market dynamics. The vehicle is expected to be capitalized through an expandable investment of up to $100 million USD from OCS alongside co-invested equity from Flatiron and its owners, as well as mortgage funding facilities. The investment is expected to expand Flatiron's managed loan portfolio to at least $600 million USD.

Janney served as sole financial advisor to Flatiron in connection with the transaction.

"We are pleased to announce the formation with OCS. We continue to see attractive opportunities within our target markets. This speaks to the strengths of the platform we have built at Flatiron and enables us to leverage our expertise by providing solutions to an expanded client base," said Robert Talas, Founding Partner of Flatiron.

"RTLs are a growing product within the broader real estate lending industry. We see increasing liquidity and attractive capital markets dynamics for capital deployment in RTLs," said Joshua Mercado, a principal at OCS.

Since 2015, OCS has raised more than $3 billion USD in committed capital across multiple funds and separately managed accounts. OCS focuses on credit and credit-like investments across corporate direct lending, asset finance, and real estate. It targets investment sizes from $20 to $150 million USD.

About Flatiron Realty Capital LLC

Flatiron Realty Capital was founded in 2018 as a privately funded real estate portfolio lender that offers alternative sources of financing to real estate developers and investors. Specializing in bridge loans, construction / rehabilitation financing, and 30-year rental investment products, Flatiron provides holistic solutions to satisfy the short-term and long-term financing needs of its core customer base.

Flatiron harnesses the hands-on, service-oriented approach of a local lender with the capital markets execution capabilities and technology-enabled infrastructure of a highly-scalable organization to offer customers proprietary credit solutions and customized service offerings.

For more information, please visit www.flatironrealtycapital.com

About UBS O'Connor
O'Connor is a multi-strategy hedge fund manager within UBS Asset Management, with complete independence in its investment decision-making. O'Connor has over 40 years of institutional experience in trading and market making and 20 years' experience as a hedge fund manager with a strong focus on relative value investing and risk management. O'Connor's capabilities cover a wide range of investment programs and manage over USD 11.4 billion in assets (as of August 2024) on behalf of institutional and high net worth clients. The firm has a global operating platform with offices located in New York, Chicago, Stamford, London, Hong Kong, Shanghai and Singapore.

For more information on UBS O'Connor, please contact:

[email protected]
UK: +44 20 7901 5538
Americas: +1 212 713 3803

About the Financial Institutions Group at Janney

The Financial Institutions Group at Janney specializes in serving financial institutions looking to better manage assets, risks, operations, and create shareholder value. We offer expert advisory in a buy-side or sell-side M&A role, as well as guidance in capital raising transactions through equity or debt instruments for both public and private institutions. We have a consistent track record of delivering highly customized solutions, exceptional service, and support from a senior team of professionals.

The group has deep expertise and experience in the following sectors: Depositories, Specialty Finance, REITS, BDCs, Insurance, and Fintech.

About Janney Investment Banking

Janney's Investment Banking practice is a leader in middle-market advisory and financing solutions. We place a high value on our consistent track record of delivering solutions and results to our clients. Since 2015, we have completed over 630 transactions aggregating over $85 billion in transaction value. We work with clients on a highly personalized basis, providing exceptional service, commitment, and senior-level attention.

Matt Veneri
Head of Investment Banking
404-601-7222
[email protected]

About Janney

Janney Montgomery Scott LLC is a leading full-service investment banking and financial services firm serving individual, corporate, institutional, and government clients. Janney is an independently operated subsidiary of The Penn Mutual Life Insurance Company, one of the 15 largest mutual insurance companies in the nation, and is a member of the New York Stock Exchange, Financial Industry Regulatory Authority, and the Securities Investor Protection Corporation.

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For more information, please contact:
Kipp Fawcett
Managing Director
212-230-2328
[email protected]

Matthew Pennino
Managing Director
646-812-7927
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Matthew Paul
Vice President
215-665-6022
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Zach Zygmunt
Associate
212-888-2527
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SOURCE Flatiron Realty Capital