AmWest Funding Corporation ("AmWest"), funds managed by Ares Management Corporation's ("Ares") Alternative Credit strategy, and Park Capital Management ("Park Capital") announced that AmWest and Ares have finalized a joint venture to purchase and invest in Non-QM loans, sourced and serviced by AmWest. The joint venture will seek to capitalize on AmWest's strong position as a leading mortgage originator and servicer with over $15 billion of Non-QM mortgage originations since inception, primarily sourced via its national wholesale platform. Ares will provide 90% of the joint venture's capital with AmWest providing the remaining 10%.

This collaboration is expected to benefit from the experience of AmWest and Ares' leadership teams alongside a successful track record of building large-scale Non-QM investment and securitization platforms. AmWest has securitized a combined $3.1 billion in unpaid principal balance in the last 3 years. The joint venture will seek to securitize the mortgage loans using the HOMES and PRKCM shelves. The Ares Alternative Credit strategy is one of the largest investors in asset based credit managing approximately $33.9 billion in assets under management as of December 31, 2023.

The team invests across the capital structure and seeks opportunities in specialty finance, lender finance, loan portfolios, equipment leasing, structured products, net lease, cash flow streams (royalties, licensing, management fees) and other asset-focused investments. ATLAS SP Partners served as sole financial advisor and Mayer Brown LLP served as legal counsel to both AmWest and Park Capital in connection with the transaction.