Redwood Trust, Oaktree form JV to invest in business purpose bridge loans

Redwood Trust has formed joint venture with funds managed by Oaktree Capital Management, to invest in business purpose bridge loans originated by CoreVest American Finance Lender (CoreVest), a division of Redwood.

Total equity commitment to the joint venture — funded 80 percent by Oaktree and 20 percent by Redwood — has the potential to finance more than $1 billion of newly-originated bridge loans, inclusive of proceeds from secured financing. The vehicle has a three-year reinvestment period during which time principal repayments can be redeployed.

“We are pleased to be partnering with Oaktree, a premiere global investment manager, in a joint venture that will enhance our ability to provide solutions to a broad spectrum of real estate investors at an important point in the housing cycle,” said Dash Robinson, president of Redwood. “We continue to see immense opportunity for our bridge lending platform, particularly as other lenders reduce their footprint. The