400 Capital Management Closes $780mm Residential NPL Securitizations
NEW YORK — September 10, 2021
400 Capital Management LLC (“400CM”, “400 Capital” or the “Firm”), an alternative credit asset manager specializing in structured credit with over $5.2bn of assets under management, announced the successful closing of two securitizations backed by $780.2mm of residential non-performing loans (“NPLs”) this summer.
“400 Capital has a long history of investing in residential credit markets. We are excited to be able to work with our capital markets partners to open alternative sources of financing for our investment vehicles,” said Chris Hentemann, Managing Partner and Chief Investment Officer. “The transactions help move the 400 Capital platform towards being a regular issuer in the capital markets across a range of asset types.”
The Firm entered into the securitizations in order to obtain term financing, remove mark-to-market risk, reduce cost and create scalable fixed-rate financing. Given the size of the loan pool, 400CM decided to offer two transactions with similar characteristics.
510 Asset Backed (“FTAB”) 2021-NPL1 closed on June 29 and was backed by NPLs with an unpaid principal balance (“UPB”) of $397.0mm. The offered notes achieved an 80% advance rate to UPB. The second transaction, FTAB 2021-NPL2, closed on August 11 and was backed by $383.2mm of NPLs, with an advance rate of UPB of 81%. The closings mark a significant milestone for the Firm and are reflective of the opportunity set in this corner of the residential credit markets.
The servicers for the transactions are Rushmore Loan Management Services LLC and Columbus Real Estate Management LLC. The program administrator is Truman Capital Advisors, LP.
About 400 Capital Management LLC
400 Capital Management LLC is an employee-owned alternative credit asset manager led by four partners with over three decades of trading, investment and risk management experience in credit and securitized credit markets with an established record of investing through multiple market cycles. Our leadership team has demonstrated the ability to generate returns, develop capital market businesses and consistently create innovative structures and securitization technologies utilized throughout the market. We offer access to a global platform of differentiated total return and absolute return alternative credit investment opportunities through multi-investor and separately managed account vehicles. We manage over $5.2 billion of client capital for global public and private pension plans, endowments, foundations, sovereign wealth funds, consultants, insurance groups, family offices and qualified high net worth individuals. Our team consists of 57 professionals with offices in New York and London.