Blackstone has struck a $1bn (£874.8m) forward-flow origination agreement with business lender Harvest Commercial Capital.
Under the agreement, Blackstone Credit and Insurance (BXCI) will acquire business loans from Harvest secured against first-lien mortgages on owner-occupied commercial property.
“We are excited to expand our asset-based credit platform by partnering with Harvest to bring much-needed financing solutions to many small businesses, secured by their real estate assets,” said BXCI senior managing directors Aneek Mamik and Nick Menzies.
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BXCI has purchased an initial portfolio of loans and set up a forward-flow programme covering a total of $1bn in loans, enabling Harvest to broaden its lending to small businesses across the US.
“This capital relationship allows us to significantly expand our lending capabilities while maintaining our disciplined underwriting standards,” said Jason Raefski, chief financial officer at Harvest Commercial Capital.
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Harvest originates, owns, sells and services first-lien, small-balance commercial loans backed mainly by multi-purpose commercial property. BXCI’s infrastructure and asset-based credit unit manages more than $100bn across private investment-grade credit and asset-based lending strategies.
This transaction comes after Blackstone bought nearly $2bn worth of commercial real estate loans from regional lender Atlantic Union Bankshares in June.
