Meridian Capital Group and Barings, one of the world’s leading investment managers, announce the launch of NewPoint Real Estate Capital.
NewPoint that completed previously announced The acquisition of Barings Multifamily Capital will build on Meridian’s broad relationship and Barings’ breadth of lending and asset management capabilities to offer a new approach to multi-family financing.
The concept of NewPoint is embodied in the name of the lending platform: it reflects a new perspective that encourages the transition from traditional multi-family financing practices to much more innovative and efficient models.
By introducing new methods of issuing and executing multi-family loans, NewPoint is ready to provide the best possible opportunity for borrowers, as well as for initiators, underwriters and service groups of the company.
But this is not your typical startup: the companies behind NewPoint have a long history of success in the real estate and mortgage markets. Their outlook is future-oriented, but influenced by decades (and in Barings’s case, centuries) of experience.
David Brickman will become CEO of NewPoint. As previously announcedBrickman joined Meridian as executive chairman in January. He came to Meridian from Freddie Mac, where as CEO he led a $ 2 trillion mortgage company for much of the COVID crisis. He also spearheaded Freddie Mac’s multi-family business for a long time, where he transformed the business, increasing annual production from $ 16 billion in 2010 to nearly $ 80 billion in 2018 and establishing the K-Deal securitization program. In addition to his roles at NewPoint and Meridian, Brickman is a senior advisor to Stone Point Capital LLC, a private equity firm with extensive experience in finance and real estate services.
Newpoint President Jeff Lee has also had a distinguished career in real estate finance. He co-founded Beech Street Capital in 2009. After Capital One acquired Beech Street in 2013, Lee served as executive vice president of the company and oversaw lending to several families.
Ralph Hertzka, Chairman and CEO of Meridian, and Yoni Goodman, President of Meridian, have formed a joint venture to build on Meridian’s 30-year history as a multi-family finance consultant, as well as past successes in agency lending. Under their leadership, Meridian has been the No. 1 multi-family broker in the United States for nearly a decade. The company closed about $ 40 billion in funding in 2020, including $ 28 billion in multi-family funding. Hertzka and Goodman will work closely with Brickman and Lee to chart NewPoint’s strategic growth.
“With NewPoint, we intend to drive much-needed innovation in the multi-family sector, using technology to facilitate agency loans and rethink multi-family securitization,” Brickman said. “We will achieve this by combining Meridian’s vast resources and industry expertise with Barings’ lending and asset management capabilities.”
Hertzka added: “We are very excited to start this new chapter. Our partnership with Barings will allow us to join forces with one of the world’s leading asset managers and bring Meridian back into the direct agent lending arena. Through the leadership, vision and creativity of David Brickman, our goal is to make NewPoint a fast platform for multi-family financing across the country. ”
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