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Gemspring Capital Acquires Controlling Interest in A10 Capital

May 04, 2018, 07:16 AM
Filed Under: Real Estate

Gemspring Capital, a middle-market private equity firm, is pleased to announce an affiliate has acquired a controlling interest in and provided additional growth capital to A10 Capital, LLC, a provider of middle-market commercial real estate loans. The investment has been made alongside Schroders, a global asset manager. Existing A10 shareholders, including H.I.G. Capital, and management, will be retaining significant minority equity interests in the Company.

Concurrent with the investment, Schroders and A10 have entered into an agreement through which Schroders will benefit from A10’s extensive origination network and servicing platform to access middle-market CRE loan opportunities for its clients. The agreement also provides A10 with the opportunity to significantly diversify its balance sheet funding model. The two firms have a five-year history of successful collaboration and this new relationship deepens the commitment by Schroders to provide client capital to this important market segment.

A10 is a provider of commercial real estate mortgage solutions in the United States. With loans ranging from $1 million to over $30 million for commercial properties, A10’s broad offering of transitional and permanent loan products covers the entire commercial property life cycle. For single-family rental (SFR) portfolios, A10 is an authorized seller/servicer of the Freddie Mac Affordable SFR pilot program. A10 offers borrowers streamlined closing and high-touch service through its full-service platform, which includes in-house underwriting, legal, and servicing. Since inception, A10 has financed over 43 million square feet of middle-market commercial properties.

Jerry Dunn, CEO of A10 Capital, said: “This transaction further strengthens A10’s balance sheet. A10’s continuing on balance sheet loan programs combined with the opportunity, where mutually beneficial, to access funds and separate accounts managed by Schroders, greatly broadens our ability to serve our borrowers, building on our legacy as a thought leader in middle-market commercial real estate lending.”

Bret Wiener, Managing Partner of Gemspring, commented: “A10 offers a differentiated value proposition to borrowers with its technology-enabled, full service lending platform. The Company’s customized products and in-house service have contributed to its stellar reputation amongst middle market borrowers. We are excited to invest in A10 and grow the business.”

Karl Dasher, CEO of Schroders North America, added: “We are pleased to join Gemspring as a co-investor in the recapitalization of A10 and to deepen our relationship with the team. A10 has established a technology driven platform with a strong credit culture that fits well with our investment and corporate culture. Their sourcing and servicing capability will play an important role in our effort to offer more private debt opportunities that meet the growing investor need for compelling fixed income returns while maintaining rigorous credit standards.”

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