NEW YORK, Oct. 3, 2018 /PRNewswire/ -- Atlantic Capital Advisors LLC (ACA) and South Street Securities Holdings, Inc. (South Street) today announced that they have signed a definitive agreement under which South Street Capital Management (SSCM), a wholly-owned subsidiary of South Street Securities, will acquire from ACA its management contract for ACM Financial Trust, Inc. (ACM) and enter the investment advisory business. Ben Hough, ACA's current President and COO will serve as President and CEO of SSCM and his team will remain in place in Winston-Salem, North Carolina. Brian Snyder, currently Head of Mortgage Trading at South Street, will join the management team and will serve as Chief Investment Officer. Other terms of the transaction were not disclosed.
Jim Tabacchi, President and CEO of South Street commented on the transaction. "We are excited to welcome Ben Hough and the rest of the ACA team to South Street. ACA has a 20-year proven track record in successfully managing mortgage portfolios through its work with ACM and previously managing the public REIT Hatteras Financial Corp. This transaction will allow South Street to further expand into the asset management business, as well as grow our presence in the mortgage market. There are several synergies between SSCM and our broker-dealer that will be beneficial to our shareholders, as well as our existing clients, and our mortgage originator pipeline hedging business. We are committed to making this business combination mutually beneficial to everyone involved, particularly the ACM investors."
Michael Hough, Chairman of the Board of ACM, noted, "We are excited to expand our long-term existing relationship with South Street. The company's expertise and position in the repo financing markets will provide significant strategic advantages for the shareholders of ACM. We believe this combination will enable us to better serve the ACM investors over the long term, and we are excited about the growth opportunities ahead of us."
The Boards of Directors of both South Street and ACA have approved the agreement. The closing of the transaction is subject to customary closing conditions, including regulatory approval, and the parties expect the closing to occur by the fourth quarter of 2018.
Pi Capital International LLC is serving as investment banker to South Street, and Milbank, Tweed, Hadley & McCloy LLP is serving as South Street's legal counsel.
About South Street Securities Holdings, Inc.
South Street Securities Holdings Inc., through its wholly owned subsidiaries, is a leading provider of U.S. Treasury and Agency repo financing to Agency Mortgage REITs, asset managers, banks, broker-dealers and other capital market participants. The company is a broker-dealer and Tier 1 FICC member running a matched book portfolio that provides low-cost financing for high-grade security positions and a source of secure short-term investment for money market funds, municipalities, GSEs, insurance companies, and other alternative deposit clients. South Street is a leading provider of MBS repo financing to the Agency REIT sector by acting as a credit intermediary between the Agency REITS and high-quality liquidity providers in the repo space. South Street's mortgage business provides access to the capital markets for mortgage originators that hedge their forward pipeline exposure. South Street also provides other servicing, collateral management, technology, and administrative services for banks, broker-dealers and other capital market participants.
Further information is available at www.southstreetsecurities.com.
About Atlantic Capital Advisors LLC
Atlantic Capital Advisors LLC, located on 751 W. Fourth Street in Winston-Salem, NC, is an investment manager specializing in residential mortgage and other real estate-related investments. The management team at ACA founded a privately held REIT (ACM Financial Trust, Inc.) in 1998, which remained ACA's sole management responsibility until 2007 when management formed Hatteras Financial, which they took public in 2008. ACA managed both REITs until the sale of Hatteras in 2016 and continued to manage ACM.
About ACM Financial Trust, Inc.
ACM Financial Trust, Inc is a privately-held mortgage finance REIT that specializes in government guaranteed residential adjustable-rate and fixed-rate mortgage backed security management. ACM is designed for the long-term investor who seeks a conservative alternative fixed income investment that is structured to provide an absolute rate of return in the form of dividend income. ACM's focus is primarily on asset/liability risk management along with controlled weightings in the credits of GNMA, FNMA and FHLMC.
Further information is available at www.acmfinancial.com.
About Pi Capital International LLC
Pi Capital's services include advising on mergers and acquisitions, recapitalizations and restructurings, and raising private capital. Pi Capital offers access to alternative investment and non-traditional pools of capital. All regulated activities are conducted through Marco Polo Securities Inc. (member FINRA, SIPC and NFA).
Further information on Pi Capital International is available at www.picapital.global.
Pi Capital International LLC
Chief Administrative Officer
SOURCE Pi Capital International LLC