Värde grows debt servicing and advisory arm

The US-based alternative investment manager has acquired Trimont Real Estate Advisors to capitalise on growth in the non-bank financial services. Trimont will be combined with First City Financial Corporation, which Värde bought in 2013.

Värde Partners has acquired a majority stake in Trimont Real Estate Advisors, aiming to capitalize on increasing demand for financial services tied to increases in new construction and development, PDI sister title REC reported. 

Värde will integrate Atlanta-based Trimont with the operations of First City Financial Corporation, a commercial finance company that certain Värde funds purchased in May of 2013, in a new Dallas office.

“Part of what made this attractive is the increasing demand for non-bank financial services, especially in the resurgent construction lending market,” Brian Schmidt, head of US Real Estate at Värde, told Real Estate Capital. “That stems generally from the progression of the real estate cycle.”

Trimont, a 27-year-old company, offers 21 business lines, including CMBS servicing, debt advisory, underwriting, due diligence and defeasance consulting among its broader financial real estate business services.

“We see a lot of growth with new debt funds, institutional investments and managers, banks that are not traditional commercial real estate lenders, as well as foreign lenders coming to America,” said Greg Winchester, Trimont principal.

Winchester and Trimont founding partners John Charles and Ernie Davis have agreed to stay with Trimont through a transition period and will be meaningful shareholders in the company. The exact time period for the transition has not yet been determined, Winchester said.

Trimont, which will retain its name, is considered an industry leader in construction loan administration and servicing, involved in some of the largest new development deals in North America and Europe. The company has completed $80 billion in underwriting and due diligence on behalf of lenders and investors, Winchester noted. 

Both firms declined to comment on the financials of the deal.