Bain Capital gains majority stake in residential investment lender Archwest Capital

By Real Estate News

Global asset manager Bain Capital announced Monday that it has acquired a controlling stake in Archwest Capital, a California-based company that offers financing to residential real estate investors.

The financial terms of the deal were not disclosed, but the companies said in a joint statement that Archwest management, led by CEO Shawn Miller, would retain a “significant minority stake.“

“We are pleased to partner with Shawn and the Archwest team to deliver dynamic financing solutions to home builders, renovators and landlords who are expanding and improving the critically undersupplied U.S. housing stock,” David DePrez, managing director for Bain Capital, said in prepared remarks.

“We believe that combining the Archwest team’s deep lending and operational capabilities with a bespoke capital solution from Bain Capital sets Archwest up to be the leader in the non-owner occupied residential lending space.”

Archwest provides business-purpose financing for single-family and multifamily homes, as well as mixed-use and commercial properties. Its product mix includes fix-and-flip loans, bridge loans and construction loans. It has reportedly originated more than $700 million in funding since 2022.

“Today more than ever, real estate investors and developers need reliable lending partners who are agile and can provide certainty of execution to solve their complex financing needs,” Miller said in a statement. “Bain Capital shares our vision for building Archwest into the leader for U.S. business purpose lending, and we look forward to leveraging their resources and operational capabilities to further enhance our innovative product suite and strengthen our value-added proposition to our borrowers and broker partners.”

Irell & Manella LLP acted as legal adviser to Archwest in negotiatons, while Piper Sandler Companies was the financial adviser and Dechert LLP was the legal adviser to Bain Capital.

Bain Capital has more than 1,750 employees worldwide and manages roughly $185 billion in assets. In March, its venture capital arm was part of a $30 million funding round to mortgage verifications provider Argyle. The firm is also a major investor in Hometap, one of the larger players in the home equity investment space.