Sector developments and company hires

Ocwen, CFPB mediation unresolved
Ocwen Financial Corporation has issued a statement expressing its disappointment that settlement discussions with the CFPB have not been resolved (SCI 21 April 2017). The move is in response to the mediator’s notice that the company’s court-ordered mediation with the bureau has concluded, after the parties were unable to reach a settlement.

The company says it engaged with the CFPB in “good faith” throughout the course of mediation and “took all actions in an attempt to reach a fair and reasonable resolution”. However, it adds that it “remains steadfast” in its belief that the CFPB’s claims are unsubstantiated and the bureau’s settlement demands do not reflect the merits of the case.

The company increased its legal and regulatory accrual related to the CFPB lawsuit by US$13.1m in 4Q20, resulting from its efforts to resolve the matter in mediation.

In other news…

Acquisition
dv01 has acquired Pragmic Technologies, an early-stage company focused on the data infrastructure of the agency MBS market. Pragmic Technologies’ Charlie Oshman and Memo Sanchez, co-founders of commercial real estate data analytics company Reonomy, will join dv01 to help expand its efforts in agency MBS and ESG.  

With the Pragmic Technologies acquisition, dv01 intends to develop a novel data infrastructure that resolves the traditionally slow and opaque reporting processes within the agency MBS sector. Agency MBS performance is typically reported on a monthly data update cycle, but dv01 plans to be the first to provide investors with granular, intra-month performance insights as result of the acquisition.

The company also intends to combine its understanding of loan-level data within securitisation with external data sources and proprietary analytics to work with partners to provide ESG ratings for structured products.

To support this growth and technological advancements, dv01 has successfully closed a US$6m series B3 financing round led by Pivot Investment Partners and joined by new strategic investor, AGNC Ventures.

EMEA
Kartesia has created a full-time CSR & ESG position, to be filled by Coralie De Maesschalck, who has been head of portfolio and ESG at the firm since 2015. She will be responsible for CSR initiatives at corporate level, ESG criteria at portfolio level and internal procedures. Basile Gerber will take over leading the portfolio and will manage the team as head of portfolio. He will deliver quarterly reporting to investors, as well as monitor the portfolio and supervise performance analysis and fund financings.

Tikehau Capital has hired Laura Scolan as head of France and coo within its private debt strategy. Scolan joins from Messier Maris & Associés, where she was a partner and co-head of its debt advisory business, having joined the firm in 2013 as a director. At Tikehau, she will be responsible for the group’s private debt investment activities in France and the operational management of private debt activity. Scolan will report to Cécile Mayer-Lévi, head of private debt at the firm.

HRR pass-throughs issued
Argentic Real Estate Finance has transferred its horizontal risk retention interests in 13 previously issued US CMBS into 14 newly formed trusts that are majority-owned affiliates. The trusts have, in turn, issued non-pooled pass-through certificates rated triple-B or triple-B minus by Fitch.

The underlying transactions were issued between 2017-2019. Argentic intends to offer a non-controlling interest of up to 80% in the MOAs to third-party investors in the future.

Name-change for CLO manager
DFG Investment Advisers has changed its name to Vibrant Capital Partners, unifying the firm with its CLO business and several of its investment vehicles, which have operated under the Vibrant brand since 2012. The firm says that its focus on technology, transparency and risk management remain core to its business.

Online lender to go public
SoFi is set to go public by merging with a SPAC, Social Capital Hedosophia Holdings Corp V, which is run by Social Capital founder Chamath Palihapitiya. The deal will value SoFi at US$8.65bn and is expected to provide up to US$2.4bn in cash proceeds. PeerIQ reports that the firm’s strategy is to target three business segments - lending, a technology platform (Galileo) and financial services.

Strategic investment
Nassau has received an initial strategic investment of US$100m from Wilton Reassurance Company and Stone Point Credit. The investment was made through the issuance of a new series of non-cumulative perpetual preferred equity. Nassau will use the new capital to execute on growth plans across its insurance and asset management businesses and to support strategic acquisitions. The firm was founded in 2015 with an initial capital commitment along with subsequent growth capital provided by Golden Gate Capital, which remains a majority controlling shareholder.

Triaxx CDO claims process opened
RCB Fund Services, the distribution agent for the ICP Asset Management Fair Fund, has opened the claims process for the fund. The ICP Fair Fund was established by the US SEC to distribute more than US$22m in disgorgement, prejudgment interest and civil penalties collected in SEC versus ICP Asset Management.

The ICP Fair Fund will be distributed to investors harmed by fraudulent practices and misrepresentations made in connection with the Triaxx CDOs (SCI 17 August 2012). Claims will be considered by the distribution agent, the SEC staff and the economic expert retained by the SEC, and used to propose to the Court a plan of distribution to compensate investors. Claim submissions must be made by 12 March.