Market updates and sector developments

Siepe has raised US$30m in a Series B funding round led by WestCap, which will drive a multi-product roadmap, including the expansion of the firm’s AI and machine learning capabilities. In conjunction with the new funding, Siepe has appointed Mark Schultis – who joined the firm as an advisor in October 2023 – as president.

The Siepe team intends to leverage WestCap's experience in the private markets ecosystem, specifically around financial technology and data management workflows. The firm says it has seen significant growth across technology and service business lines in 1H24 with private credit managers. This includes onboarding 19 CLO and private credit deals with eight top-tier US CLO managers, accounting for over US$7.7bn in new assets under administration.

WestCap's support of Siepe will be led by its founder Laurence Tosi, together with partner, co-coo and head of strategic operators Kevin Marcus, who will join the Siepe board. Additionally, WestCap principal Ryan Benevides will join the Siepe board.

Schultis brings nearly two decades worth of experience in the credit and CLO markets. Previously, he was ceo at SE2, and a partner and svp at IHS Markit running the Wall Street Office business.

In other news…

Trimont bags CMBS servicing business
CRE loan services provider Trimont has entered into a definitive agreement to purchase Wells Fargo’s non-agency third-party commercial mortgage servicing (CMS) business, the largest servicer of CMBS in the US. The transaction, backed by Värde Partners, means that Trimont manages a combined US$640bn of US loans - equivalent to approximately 11% of the US commercial real estate lending market – and US$75bn-equivalent of international loans.

Trimont primarily serves non-bank and alternative lenders, while CMS specialises in securitised debt products, including conduit, SASB and agency CMBS, as well as CRE CLOs. This acquisition enables Trimont to offer comprehensive servicing across all non-bank CRE lending structures, including master servicing.

Funding for the transaction will be provided by Värde Partners, which acquired Trimont through certain funds in 2015. The transaction is subject to customary closing conditions and is expected to be finalised in early 2025.

Corinne Smith