Published on 21 Mar 2024 on Zacks via Yahoo Finance
Redwood (RWT), CPP Investments Enter a $750M Partnership
Redwood Trust, Inc. RWT has announced a $750-million strategic capital partnership with the Canada Pension Plan Investment Board or CPP Investments. This consists of $500 million in Asset Joint Venture and a $250-million corporate secured financing facility that CPP Investments will provide to RWT.
CPP Investments will contribute 80% of the $500 million, whereas Redwood will contribute the remaining 20%.
The partnership will initially invest in Redwood’s residential investor bridge and term loans, targeting more than $4 billion in total acquisitions. The company will earn ongoing fees for overseeing the administration of the investment and is entitled to earn additional performance fees if a specified return hurdle is realized.