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May 11, 2008
 

Co-Invest and Loan Participation

The Real Estate Finance Group has extensive experience in co-investing and syndicating real estate debt. Over the past five years, Babson Capital has structured co-investments with more than 15 insurance companies and 10 commercial banks (both foreign and domestic).

Why We Co-invest

Babson Capital, on behalf of its largest client, Massachusetts Mutual Life Insurance Company (MassMutual), manages credit exposure to single assets, borrowers, property types, locations or a combination of the foregoing. Co-investing provides Babson Capital the opportunity to manage those exposures and remain continuously active in the marketplace.

Servicing the Investment

Babson Capital has a well-recognized loan administration function rated "Above Average" by both S&P and Fitch. A specialized team within the Loan Administration area, dedicated solely to servicing co-investment transactions, provides co-investors timely and accurate reporting. Additionally, the use of a well-accepted Participation and Servicing Agreement provides for expeditious and efficient closings.

What Babson Capital Offers Co-investment Clients

There are a number of reasons to consider a Babson Capital-sponsored co-investment. These include:

  • A national origination capability
  • Regional market presence and underwriting expertise
  • Access to larger and higher quality transactions
  • Access to larger and better capitalized borrowers
  • An efficient way to invest mortgage capital
  • Ease of investment in originated, underwritten, negotiated, closed and serviced loans
  • Ability to manage credit exposure
  • Access to larger and better capitalized borrowers
  • A long-term alignment of interests with MassMutual's financial strength
  • MassMutual retains a significant interest in every co-investment
  • Co-investment with an experienced Lead Lender and Servicer
  

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If you have questions or would like more information about our products, please contact us by email or by phone at 1-877-766-0014