Amherst in Line to Join Ranks of CLO Issuers
Amherst Capital is prepping its first commercial real estate CLO.
Goldman Sachs will run the books on the offering, which is expected to hit the market in the fourth quarter and weigh in at about $400 million.
Amherst is an investment manager that was launched in 2015 as a joint venture between BNY Mellon and Amherst Holdings of New York. Last year, BNY converted its majority stake in the joint venture into a minority interest in Amherst Holdings.
Amherst Capital originates bridge loans and invests in commercial and residential MBS for advisory clients. As of June 30, the operation had $1.8 billion of commercial mortgages under management.
The shop’s head of originations is Chris Kelly. He previously held a similar post at CapitalSource and was a managing director at Natixis.
Other key staffers include two other CapitalSource alumni: managing director Abbe Franchot Borok and originations specialist Gabe Boyar.
Amherst writes floating-rate loans on transitional properties. Mortgages range from $10 million to $75 million and have terms of 2-5 years. The team focuses on the major property types and some niche areas.
The Amherst deal is one of several CLOs expected to hit the market in coming weeks, with offerings by Bancorp ($778.2 million) and Varde Partners first in the queue. So far this year, $12.7 billion of commercial real estate CLOs have priced, putting the sector on pace to easily surpass last year’s $13.9 billion tally.