Former Freddie Mac CEO David Brickman will take the helm of a newly formed commercial agency lending platform, created by a partnership between commercial mortgage brokerage Meridian Capital Group and investment manager Barings.
Brickman will lead the company as CEO. Under the terms of the agreement, the joint venture will acquire the assets and liabilities of Barings Multifamily Capital, including its licenses to participate in various lending programs. It will operate the agency loan origination and servicing businesses currently conducted by BMC under new ownership, leadership and branding.
The transaction for the new partnership is subject to federal government-sponsored enterprise approval, with the deal expected to close immediately after these approvals.
The newly created platform will be operated as a standalone business under its own name and branding which will be announced prior to the transaction closing. Meridian will own a majority of the newly created platform and its ownership is subject to increase over time.
Day-to-day management of the platform will be assumed by the joint venture’s management team, led by Brickman, and the joint venture will be governed by a board of directors that is majority controlled by Meridian.
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In addition to heading the new agency joint venture, Brickman will assume the role of executive chairman of Meridian and senior advisor to Stone Point Capital. As executive chairman of Meridian, he will work alongside Ralph Herzka, Meridian’s chairman and CEO, and Yoni Goodman, Meridian’s president, to chart the strategic course of the firm, expand its product offerings and grow Meridian on a national scale.
Brickman ran the multifamily division at Freddie Mac before assuming the role of CEO in July 2019 after the retirement of Donald Layton. In November 2020, Brickman announced he would be leaving the GSE and stepped down officially on Jan. 8.
“We are thrilled to be embarking on this new chapter,” Meridian Chairman and CEO Ralph Herzka said. “Our partnership with Barings will enable us to join forces with one of the world’s leading asset managers and reintroduce Meridian to the direct agency lending arena. The addition of David Brickman to our executive team will mean that we are working alongside one of the most prominent multifamily experts in the country.”
“David did not just preside over a remarkable period of expansion at Freddie Mac; he did so through the type of innovation, creativity and ingenuity that are critical to thriving in today’s marketplace,” Herzka said.
Meridian announced a strategic partnership with investment funds managed by Stone Point Capital to fuel the company’s continued growth as it enters a new phase of product and geographic expansion. Over the coming years, Meridian said it will be focused on developing its new agency lending joint venture, growing its core mortgage brokerage business, expanding its investment sales and retail leasing products to key markets nationally and growing other lines of business.
Subject to regulatory approval, the agency lending joint venture will, through a wholly owned subsidiary, participate in the Fannie Mae DUS program, the Freddie Mac Optigo network and Federal Housing Administration/Ginnie Mae multifamily lending programs.
In addition, the new business will service commercial and multifamily loans for Barings’ parent company MassMutual and other lenders. Meridian will originate multifamily loans on behalf of the venture on a non-exclusive basis, and will continue to originate for various banks, agency lenders, and financing sources as it has in the past.
Bank of America Securities is serving as exclusive financial advisor to Barings in connection with the agency lending partnership with Meridian.