Pretium to Originate Up to $5 Billion in Loans to Homebuilders; Secures $550 Million for its Inaugural Institutional Finance Vehicles Dedicated to Creating and Renovating Residential Inventory

NEW YORK, Jan. 16, 2025 /PRNewswire/ -- Pretium, a specialized investment firm with over $55 billion in assets under management, today announced the closing of its inaugural homebuilder finance vehicles (collectively, the "Fund"), securing $550 million in equity capital commitments from a diversified group of existing and new institutional investors. Including leverage and capital recycling throughout the Fund's life, the Fund expects to originate up to $5 billion in loans to homebuilders to create new and renovate existing housing stock across the U.S.

The Fund's investments will comprise Residential Transition Loans, which facilitate the renovation of aged houses for homeownership with conventional mortgages; Vertical Construction Loans on Single Family For-Sale Communities and Build-to-Rent Communities; and Horizontal Infrastructure Loans to land developers/lot bankers. As part of its strategy, the Fund will use the unique data and analytics capabilities of Pretium's five residential real estate operating companies to make informed and timely credit decisions on residential housing projects across high growth markets in the United States. Additionally, the Fund will utilize Pretium's operating companies, including Anchor Loans, to directly originate and service loans for private homebuilders and developers, who previously relied on regional banks to fund their growth. On a leveraged basis, the Fund has committed $650 million of capital to date to investment opportunities.

"The success of this Fund reflects the strength of our brand as a leading investor in residential real estate. It underscores the significant opportunity we see to help increase housing supply across the U.S. by filling the void left by regional banks in real estate lending," said Jonathan Pruzan, Co-President of Pretium. "Through this Fund, Pretium will provide capital to homebuilders so that they can add critically needed inventory to the housing market."

Josh Pristaw, Pretium's Head of Real Estate, added, "By providing bespoke debt capital solutions, we're supporting private homebuilders who are underserved by traditional financial institutions, and we are facilitating new housing supply. This Fund will support the construction of approximately 12,000 new homes in key markets, meaningfully increasing housing availability in regions experiencing the most acute shortages."

Since 2020, Pretium has invested more than $2.5 billion in the ownership of new Build-to-Rent construction in the U.S., with a portfolio now exceeding 8,000 such homes across 37 cities in 15 states.

Kirkland & Ellis LLP served as legal counsel to Pretium on these investment vehicles.

About Pretium
Pretium is a specialized investment firm focused on U.S. residential real estate, residential credit, and corporate credit. Pretium was founded in 2012 to capitalize on investment and lending opportunities arising as a result of structural changes, disruptions, and inefficiencies within the economy. Pretium has built an integrated analytical and operational ecosystem within the U.S. housing, residential credit, and corporate credit markets, and believes that its insight and experience within these markets create a strategic advantage over other investment managers. Pretium's platform has more than $55 billion of assets, comprising real estate investments across nearly 90 markets in the U.S., and employs approximately 7,000 people across 50 offices, including its New York headquarters, Miami, London, Seoul, and Sydney. Please visit www.pretium.com for additional information.

SOURCE Pretium Partners