Meridian, Barings Partner in New Lending Platform
- Feb 01, 2021
Commercial mortgage brokerage Meridian Capital Group and investment manager Barings have partnered to create a new agency lending platform. The platform will be led by David Brickman, former CEO of Freddie Mac. Two weeks ago, Meridian arranged a loan for a multifamily community in Brooklyn’s South Park Slope enclave.
The joint venture will acquire the assets and liabilities of Barings Multifamily Capital LLC (BMC), including its licenses to participate in various lending programs and operate the agency loan origination and servicing businesses currently conducted by BMC under new ownership, leadership and branding. The new platform will be operated as a stand-alone business under its own name and branding. Meridian will own a majority of the newly created platform. Its ownership is subject to increase over time.
The platform’s day-to-day management responsibilities will be assumed by the JV’s Brickman-led dedicated team. The JV will be governed by a board of directors majority controlled by Meridian. In addition to leading the new JV, Brickman will take on the role of executive chairman of Meridian and senior advisor to Stone Point Capital LLC.
Having spent the vast majority of his career at Freddie Mac, Brickman both worked in and led its multifamily business. He oversaw a period of dramatic growth in which Freddie Mac’s production increased from $16 billion in 2010 to almost $80 billion eight years later. Under Brickman, its flagship K-Deal securitization program was established as among the leading securitization products in the structured finance markets.
Meridian also announced a strategic partnership with investment funds managed by Stone Point Capital. That partnership should spark the company’s continued growth as it launches a new stage of product and geographic expansion.
The addition of Brickman, partnership with Barings and strategic partnership with Stone Point Capital leave Meridian poised to pursue several objectives, the company said in a statement. They include developing its new agency lending joint venture, expanding its core mortgage brokerage business nationally, growing its investment sales and retail leasing products to key markets nationally, and growing other lines of business.