As asset-based lending gains popularity among pensions and endowments, a $442 billion investment manager is deploying institutional capital to back a Texas-based lending platform’s push to expand nationally.
Barings is acquiring a minority stake in short-term bridge loan provider Crebrid on behalf of its investors. As part of the deal, the MassMutual subsidiary will also provide the recently rebranded fintech company formerly known as Wildcat Lending, which focuses on residential transition loans, with a $500 million credit facility so it can expand its offerings from Texas, Ohio, and Tennessee to high-growth markets across the country.
The investment was made through Barings' $70 billion Asset Based Finance strategy. Burak Cetin, head of residential for Barings’ ABF group, told Institutional Investor via email that “providing capital to non-bank originators and operators” that seek to give homeowners more access to debt has been a reliable return generator, with these initiatives deploying more than $5 billion in residential mortgages over the past three years.
“We’ve enabled these partners to scale their platforms while offering our investors access to high-quality, asset-backed investment opportunities,” Cetin added.
“A Long History of Buying This Type of Credit”
Crebrid provides fix-and-flip loans to creditworthy homeowners. Since its formation 11 years ago, the company originated nearly $2 billion in residential transition loans (RTLs). With Barings’ capital backing, the company plans to deploy $1 billion in its first year and originate up to $5 billion in loans annually by 2030.
Crebrid President Tim Jordan told II in an interview that the original Wildcat Lending platform had “limited capital capacity” to grow its originations on a national level. “That’s where Barings came in.”
For Jordan, Barings “was a good fit for” the newly renamed Crebrid (a portmanteau of “credit” and “bridge”). “They have a long history of buying this type of credit,” he said. “We go back 10 years; they go back 30 years.”
Jordan added he is looking to “build on the team going forward” and enhance Crebrid’s technology platform.
More Home Improvement Spending Ahead… Or Perhaps Not
With this investment, Barings and Crebrid are counting on homeowners to spend more on home improvement expenses compared to last year. And they are right to be optimistic — for now. While Harvard’s Joint Center for Housing Studies currently projects a modest uptick in homeowner improvement spending, managing director Chris Herbert warned that “uncertainty surrounding foreign tariffs and falling consumer confidence could well dampen this expected growth.”
Asset-based lending is a corner of private credit that has been getting more attention, as demonstrated by firms like Blue Owl and Mesirow buying up alternative lenders, while private debt managers such as Sixth Street and PIMCO launch their debut ABL-dedicated funds. With investors expecting banks to continue to operate in a more restrictive environment, institutional investors find ABL’s flexibility, diversification, and risk-adjusted returns increasingly appealing.
Concurrently, Barings is investing in Crebrid as its diversified alternatives equities team led by Mina Pacheco Nazemi has been partnering with state pensions like Maryland's to target local infrastructure investments in the lower-middle-market. In just six months, Pacheco Nazemi’s DAE team has raised $1 billion in institutional capital to target smaller private equity and infrastructure deals.
