CHARLOTTE, N.C., April 11, 2011 (GLOBE NEWSWIRE) -- RiverBanc LLC ("RiverBanc" or the "Company") announced today that it has entered into a multi-year Investment Management Agreement with New York Mortgage Trust, Inc. ("NYMT"). Under the agreement RiverBanc will source, structure and manage investments secured by commercial real estate that will be funded by NYMT on a flow basis. As part of this transaction, NYMT will also receive a minority ownership stake in RiverBanc, alongside the company's management team and Harvest Capital Strategies LLC, a subsidiary of publicly traded JMP Group Inc.
The investment program will provide both mezzanine loans and preferred equity for all commercial property types on a nationwide basis. The Company will focus on middle market opportunities and pursue transactions in increments as low as $2 million secured by properties valued $10 million or greater. The new venture will also participate in structured investments such as the acquisition of seasoned or distressed loan portfolios, net leased properties or subordinate CMBS securities.
Commenting on today's announcement, RiverBanc Founder and Chief Executive Officer Kevin Donlon stated: "Our partnership with New York Mortgage Trust allows us great flexibility in providing capital to our clients. We expect significant ongoing demand for hybrid debt/equity structures from property owners wishing to acquire or recapitalize properties. We believe we can generate attractive returns for NYMT as the commercial real estate industry continues its recovery."
Steven R. Mumma, Chief Executive Officer of NYMT, adds, "We are pleased to have formed this partnership with RiverBanc. This arrangement provides us with an advantageous entry point into the commercial real estate sector so that we can further grow and diversify our portfolio. We have great confidence in the management team and the business model we are building together."
About RiverBanc
RiverBanc is a privately owned investment management and specialty finance company focused on high yielding investments in the commercial real estate arena. RiverBanc was founded in 2010 by Kevin Donlon, formerly the founder and Managing Director of Helix Financial Group,which was sold to BlackRock in January 2010.
About New York Mortgage Trust
New York Mortgage Trust, Inc. is a real estate investment trust ("REIT") in the business of acquiring, investing in, financing and managing primarily mortgage-related assets. As a REIT, the Company is not subject to federal income tax provided that it distributes at least 90% of its REIT income to stockholders.
About JMP Group
JMP Group Inc. is a full-service investment banking and asset management firm that provides investment banking, sales and trading, and equity research services to corporate and institutional clients and alternative asset management products to institutional and high-net-worth investors. JMP Group operates through three subsidiaries: JMP Securities,Harvest Capital Strategies and JMP Credit Advisors. For more information, visit www.jmpg.com.
Disclosure
Statements contained in this press release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Also, when the Company uses any of the words "believe," "will," "expect," "anticipate," "intend," "plan," "estimate," or similar expressions, the Company is making forward-looking statements. In part, the Company has based these forward-looking statements on possible or assumed future operations of the Company. These are forward-looking statements and not guaranteed. They are based on the Company's present intentions and on its present expectations and assumptions. These statements, intentions, expectations and assumptions involve risks and uncertainties, some of which are beyond the Company's control, that could cause actual results or events to differ materially from those anticipated or projected by the Company. You should not place undue reliance on these forward-looking statements, as events described or implied in such statements may not occur. The Company undertakes no obligation to update or revise any forward-looking statements as a result of new information, future events or otherwise.
CONTACT: RiverBanc LLC Kevin Donlon, Chief Executive Officer 704-831-8107 kdonlon@riverbanc.com