Saluda Grade Taps Securitization Market Again with FIGURE HELOC Deal

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$150 Million Deal Backed by Home Equity Lines of Credit

Saluda Grade Asset Management (“SGAM”)¹, a private alternative real estate investment firm, announced the successful closing of a $150 million unrated securitization backed by home equity lines of credit originated and serviced by Figure Lending LLC (“Figure”). The transaction, GRADE 2021-FIG2, closed on February 26th and is the fifth securitization issued and sponsored by an SGAM-managed fund. The deal also marks the second time the two companies have come to market in six months.

Figure Technologies, Inc., a portfolio investment held in a fund of Saluda Grade Ventures (“SGV”) 1, the venture arm of Saluda Grade, has worked closely with the Saluda Grade Advisory (“SGA”) team to access more scalable capital through institutional partners.

“This transaction further cements our ability to execute as both an equity partner and capital markets provider within the platform² we have created at Saluda Grade,” said Ryan Craft, CEO of Saluda Grade. “The demand for high quality real estate assets from the securitization market remains strong and our platform’s position in the market affords us the opportunity to meet that demand.”

SGAM sees home equity as one of the largest opportunities in today’s domestic mortgage market, estimating that nearly $7 trillion of American home equity remains trapped because of strict lending regulations and a lack of convenient borrowing options for the American homeowner. Aiming to solve this, Figure’s HELOC product delivers home equity liquidity through a seamless digital underwriting process, and a very fast turnaround for up to $250,000 of funding.

¹ SGAM & SGV are both registered with the SEC as an Exempt Reporting Adviser
² The platform refers to the three distinctly different business lines of Saluda Grade: SGAM, SGV, and SGA (a consulting firm, not registered with the SEC).

About Saluda Grade:

Founded in 2019, Saluda Grade is a boutique real estate advisory and asset management firm focused on the alternative “non-bank” lending sector. Saluda Grade Advisory advises small to mid-sized lenders seeking institutional capital markets expertise and assists in delivering institutional capital to private lenders. Saluda Grade Ventures, the firm’s equity investment arm, currently manages two private funds. Saluda Grade Asset Management manages debt funds investing in transitional mortgage loans and distressed securitized product assets.

With offices in New York and San Francisco, the company is driven by a core mission to identify alternative lending sectors needing institutional capital to fuel growth. Its management team has more than 85 years of combined experience in the mortgage and securitized credit space. The firm has deep relationships with both private lenders and capital providers that allow Saluda Grade Advisory to bring attractive assets to institutional investors.

This press release is for informational purposes only and is neither an offer to sell nor the solicitation of an offer to any Fund or any other securities and shall not constitute an offer, solicitation, or sale. Any offers will be made only by means of a private offering memorandum.

Forward-looking Statements:
Statements in this press release have “forward-looking statements” and are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from those express in such forward-looking statements.

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Ashleigh Carone
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