SHERMAN OAKS, Calif., July 29, 2021 /PRNewswire/ -- Patch Funding LLC ("Patch Funding" or the "Company"), formerly known as Patch of Land, the pre-eminent residential business purpose real estate lender, announced today a strategic asset-backed capital raise and an infusion of growth capital allowing the Company to expand its business and origination capabilities significantly.
Cloverhill Funding LLC ("Cloverhill") acquired the assets of Patch of Land and invested significant growth capital to further fuel growth for the newly rebranded Company. The investment comes at a time of skyrocketing new housing demand in the wake of stay-at-home orders and a new work-from-home trend.
In addition to the equity investment, Cloverhill announced the arrangement of a funding facility for Patch Funding allowing it to fund loans efficiently and cost effectively, thereby providing greater service to its borrowers. The added lending capacity provided by the facility will allow Patch Funding to aggressively capture market share and continue targeted expansion.
"Cloverhill is a strong believer in the continued growth of the residential business purpose lending market as well as the U.S. housing market. The ability to invest in a platform like Patch of Land, given its strong relationships with borrowers and brokers and its proprietary technologies, gives us a great foothold into the sector," said Teddy Wasserman, head of the Board of Advisors for Cloverhill. "We hope that the large capital backing of Cloverhill will allow the management team to take the Company to the next level."
According to the National Association of Realtors, home values have increased by 24.4% over the past 12 months, with the supply dropping to just 2.5 months at the current sales pace. Stay-at-home work and continued population growth along with attractive home-lending markets have seen demand from buyers soar while the supply shortage has only increased due to construction costs and product availability.
"Cloverhill fundamentally understands the team's strengths and provides the optimal partnership to have Patch Funding become an institutional originator," declared Jason Fritton, co-founder and CEO of Patch of Land. "They saw what we were trying to build since founding Patch of Land in 2013, and we could not have asked for a better suitor to carry on the legacy of the company," stated Carlo Tabibi, co-founder and former CEO. "I am thrilled to have seen the full life cycle of the company I started and am excited to see Cloverhill take the business to the next level with the current management," said Brian Fritton, co-founder and former CTO.
Patch Funding will continue to work with its vast borrower network to provide more attractive financing products and will also continue to work with institutional capital partners who have been recurring buyers of the Company's originations. Working under the Cloverhill ecosystem is expected to accelerate all aspects of Patch Funding's business.
SOURCE Patch Funding LLC