Oaktree Capital and Redwood Trust Form Joint Venture to Invest in Business Purpose Bridge Loans

Paul, Weiss is advising funds managed by Oaktree Capital Management, L.P., in the launch of a joint venture with Redwood Trust, Inc., a leader in expanding access to housing for homebuyers and renters, to invest in business-purpose bridge loans originated by CoreVest American Finance Lender, a top-tier bridge-lending platform and a division of Redwood.

Total equity commitment to the joint venture, funded 80% by Oaktree and 20% by Redwood, has the potential to finance over $1 billion of newly originated bridge loans, inclusive of proceeds from secured financing. The investment vehicle has a three-year reinvestment period during which time principal repayments can be redeployed.

The Paul, Weiss team includes, among others, corporate partners Samuel Welt and Kenneth Schneider; and tax partner Robert Holo and counsel Sohail Itani.