Castlelake enters into $2bn residential mortgage deal with Invictus

Castlelake has entered into a deal with Invictus Capital Partners, an alternative asset manager specialising in private residential credit, to invest in up to $2bn (£1.51bn) in newly-originated residential mortgages.

The agreement will enable Castlelake to provide its investors with exposure to what it believes to be high quality mortgage whole loans. The capital commitment will contribute to the further growth of Invictus’ existing scaled loan investment platform.

“We are pleased to engage with Invictus, who we believe has a loan sourcing and credit underwriting approach that aligns with our granular data-driven investment philosophy and focus on downside protection,” said Isaiah Toback, partner and deputy co-chief investment officer at Castlelake.

“We look forward to working with the Invictus team as they continue the scaling of their loan investment capabilities and provide our investors with exposure to what we view as attractive pricing in the private residential loan market at a time when we see the sector experiencing increased growth,” he added.

With 20 years of experience investing in asset-based opportunities, Castlelake has entered into partnerships to acquire or finance approximately $7bn of residential and commercial real estate loans since 2024.

Invictus Capital Partners has significant experience in residential loan investing, having acquired over 70,000 loans representing more than $35bn in balance since 2015.

“We believe this relationship with Castlelake highlights the recognition from sophisticated alternative investment managers of the significant opportunity to invest in high-quality loans in the residential credit market, the largest asset-based finance sector globally,” said Michael Warden, senior managing director and chief executive at Invictus.

“Castlelake’s support affirms our belief that residential private credit deserves a featured position in an alternative credit portfolio.”