Imperial Fund in the News

Victor Kuznetsov, managing director of Imperial Fund, an affiliate of A&D, said the upcoming acquisition should help increase non-QM production volumes for securitizations which couldresult in larger-sized deals and more issuance of non-QM.

“Our target is to raise $500m throughout Atlas Merchant Capital to deploy into non-QMsecuritizations,” he said. “We raised the capital and now we are seeking to increase production todeploy this capital.”

Victor Kuznetsov, founder and managing partner of Imperial Fund Asset Management, A&D’s liquidity partner for 100% of its collateral, spoke with NMP about the deal after it was announced Thursday afternoon. “First of all,” he explained, “I would say it is a 100% conventional platform." The acquisition will allow the company to expand the reach of its Non-QM products, while adding more conventional loan volume to the Fannie-Freddie business it already does. “Our investors who buy our bonds are going to be happy that we are going to be able to slightly decrease the Florida concentration and increase concentrations in other states. It’s very, very beneficial for us,” he added.

The proposed deal comes after A&D Mortgage and its capital markets affiliate Imperial Fund Asset Management last September inked a joint venture in conjunction with Bob Diamond’s Atlas Merchant Capital which would help provide more capital for mortgage originations.

Allocations to whole loans have focused on specialized residential mortgage securitizers such as Imperial Fund, which invests in non-QM loans. This is particularly favorable for regional banks that need lower-cost exposure. Many in the insurance space are utilizing separately managed accounts (SMAs), which are low-cost investment vehicles that outsource operations costs to the SMA manager. A manager like Imperial Fund conducts due diligence, acquires the loans and manages them on behalf of its clients.

"High cost of living areas can deplete disposable income making it harder to save for retirement or invest in real estate,” said Yuri Nosenko a wealth adviser at Hollywood, Florida-based Imperial Fund Asset Management.

The securitization was launched in partnership with Atlas Merchant Capital and Imperial Fund Asset Management, building on their recent securitization deal with the ADMT 2024-NQM5 transaction.

Finally, A&D Mortgage, working with Atlas Merchant Capital and Imperial Fund Asset Management, have priced a $303.9 million non-QM securitization, A&D Mortgage Trust 2024-NQM6. This follows an October securitization from the company.

"Securitization remains a cornerstone for expanding access to capital, especially within the Non-QM mortgage sector," said Bob Diamond, founding partner and CEO of Atlas Mortgage Capital in the A&D press release. "This deal represents a sound investment, fortified by strong credit enhancements and dynamic collateral, making it resilient against market fluctuations."

A&D Mortgage, a Non-QM lender; Atlas Merchant Capital; and Imperial Fund Asset Management, have successfully priced its latest securitization, A&D Mortgage Trust 2024-NQM6 (ADMT 2024-NQM6). This $303.9 million transaction, backed by 872 newly originated non-prime residential mortgages, reflects the success of this joint venture in addressing the evolving needs of borrowers and investors.

"High cost of living areas can deplete disposable income making it harder to save for retirement or invest in real estate,” said Yuri Nosenko a wealth advisor at Hollywood, Florida-based Imperial Fund Asset Management.

“Over the past decade, real wages (adjusted for inflation) have grown by less than 0.5% annually, while the cost of living has increased much faster,” said Yuri Nosenko, wealth advisor at Imperial Fund Asset Management.

This new issuance followed A&D Mortgage's recent partnership with Atlas Merchant Capital and Imperial Fund Asset Management, formed to boost A&D’s non-QM mortgage securitization platform.