Renovo secures $74.5M investment-grade note deal to fuel expansion

RF Renovo Management Co. LLC, a nationwide lender to residential real estate investors, closed two senior secured corporate note transactions totaling $74.5 million, the company announced Thursday.

The dual-tranche structure received investment-grade ratings from Egan-Jones and HR Ratings, according to the announcement. Brean Capital LLC served as Renovo’s exclusive financial adviser and sole placement agent.

Renovo, founded in 2011 and headquartered in Chicago, has originated more than $12 billion and funded 27,000-plus business-purpose loans to investors. The company operates a nationwide origination network across more than 30 metropolitan statistical areas (MSAs), offering a full suite of business-purpose loan products supported by in-house servicing.

“The continued confidence and support of our new and existing capital partners is invaluable,” Kevin Werner, co-founder and CEO of Renovo, said in a statement. “This transaction will accelerate Renovo’s expansion into serving additional markets and offering new products.”

Dan McLaughlin, Renovo’s chief financial officer, said that executing the transaction “in a turbulent market environment further validates the strength of our platform” and positions the company’s balance sheet to pursue new opportunities.

The move underscores continued investor appetite for credit exposure to business-purpose and investor-focused residential mortgages, even amid higher rates and tighter capital market conditions. For private lenders, nonbank lenders and warehouse providers, the deal is another data point that well-capitalized, specialized platforms can still tap investment-grade debt markets.

For real estate investors and fix-and-flip operators, Renovo’s additional capital could translate into more consistent access to bridge and longer-term financing in key MSAs, along with potential product expansion at a time when bank credit remains constrained. Competing lenders may face ongoing pressure to secure diversified funding sources, including rated corporate note programs, to remain competitive on pricing and execution.

Renovo said it plans to use the proceeds to support expansion into additional markets and to roll out new investor-focused loan products.

This article was generated using HousingWire Automation and reviewed by a HousingWire editor before publication. The system helps convert company announcements and industry data into HousingWire-style news coverage.