Redwood Trust and Canada Pension Plan Investment Board (CPP Investments), through subsidiaries of CPPIB Credit Investments, have formed a $750 million strategic capital partnership.

The partnership consists of a newly formed $500 million asset joint venture and a $250 million corporate-secured financing facility that CPP Investments is providing to Redwood.

The joint venture will initially invest across the broad suite of Redwood’s residential investor bridge and term loans, targeting more than $4 billion in total acquisitions. Redwood and its subsidiaries will administer the assets on behalf of the joint venture. CPP Investments and Redwood will contribute up to $500 million of equity to the joint venture, with an anticipated split of 80 percent from CPP Investments and 20 percent from Redwood. Redwood will earn ongoing fees to oversee the administration of the joint venture and is entitled to earn additional performance fees upon realization of specified return hur