Sector developments and company hires

Digital investment ABS prepped
DigitalBridge Group is in the market with its debut securitisation, the US$500m DigitalBridge Issuer Series 2021-1. The unusual transaction is secured by the firm’s digital investment management fees and carried interest, including from future investment vehicles.

The triple-B rated notes will be issued in two classes: a US$300m class A2 secured fund fee revenue tranche, to be drawn in full at closing; and a US$200m class A1 variable funding tranche that can be drawn, repaid and subsequently re-drawn over the deal’s five-year term.

DigitalBridge (formerly known as Colony Capital) focuses on identifying and capitalising on key secular trends in digital real estate. It is currently the only global REIT that owns, manages and advises across all major infrastructure components of the digital ecosystem, including data centres, cell towers and fiber networks, according to KBRA. As of 31 March, DigitalBridge had US$46bn of AUM, of which US$32bn is dedicated to digital real estate and infrastructure, and US$12.9bn to digital fee earning equity under management on behalf of third-party investors.

The collateral securing the notes is divided into two groups of management fees, consisting of current and future fees (with an NPV of US$899.63m), and select balance sheet assets (US$734m). The debt is sized to be serviced from the management fee portion of the collateral, with the balance sheet assets providing additional security for noteholders.

The value of the transaction collateral is determined by calculating the discounted value of management fees and the book value of the firm’s digital balance sheet investments. The deal is governed by a maximum permitted LTV of 35% or an asset coverage of 285.7%.

DigitalBridge is in the process of raising its second fund, DCP II, targeting a closing of over US$6bn. The firm has so far received US$4.5bn of signed commitments.

Barclays is structuring and placement agent on the transaction.

EMEA
Pepper Money has recruited Matt Blake as treasurer. He was previously director of treasury at Together, working there for almost 13.5 years. Prior to that, he had an almost four-year stint at Together as a management accountant, before working as a financial reporting accountant at Bupa.

North America
Greystone has appointed Eliav Dan as senior md, to oversee structured loan originations, CMBS, balance sheet lending and the firm’s agency and FHA programmes. Based in Los Angeles, Dan joins from Barclays, where he served as West Coast head, in charge of CMBS and balance sheet originations for the West Coast territory.

He has over 20 years’ experience in the industry, having held prominent positions both at Ladder Capital and Morgan Stanley. He will report directly to Scott Chisholm, Greystone’s evp and head of commercial.

Jake Kaercher has joined MUFG's MBS trading team as a director, securitised product trading. Working closely with the team, Kaercher will be responsible for growing the firm's agency CMBS businesses, including Freddie K Multifamily securities (FHMS), Freddie Small Balance Multifamily (FRESB), Freddie Tax Exempt (FRETE), Fannie Mae Delegated Underwriting and Servicing (DUS), Alternative Credit Enhancement Securities (ACES), Fannie Mae Guaranteed Multifamily Structures (GEMS) and Ginnie Mae Project Loans.

He will report to Michael McCarthy, head of MBS and securitised products trading, and will be based in New York. Kaercher joins MUFG with more than 25 years of industry experience, including time running the agency multifamily business at Piper Sandler, Stifel Nicolaus and Merrill Lynch.