Trimont Signs Definitive Agreement to Acquire Wells Fargo Non-Agency Third-Party Commercial Mortgage Servicing Business
Deal Makes Trimont the Largest Loan Servicer in the U.S. Commercial Real Estate Industry Representing 11% of U.S. Market
ATLANTA (20 August 2024) – Trimont, the leading global commercial real estate loan services provider, has entered into a definitive agreement to purchase Wells Fargo’s non-agency third-party Commercial Mortgage Servicing (CMS) business, the largest servicer of CRE securitized debt in the U.S. The transaction, backed by Värde Partners, positions Trimont as the largest loan servicer, managing a combined $640 billion of loans in the United States, equivalent to approximately 11% of the U.S. commercial real estate lending market.
A leader in complex non-bank credit servicing, Trimont primarily serves non-bank and alternative lenders, while CMS specializes in securitized debt products including CMBS conduit, SASB, CLOs, and Freddie Mac K-series. This acquisition enables Trimont to offer comprehensive servicing across all non-bank commercial real estate lending structures, including Master Servicing.
“Trimont and Wells Fargo’s Commercial Mortgage Servicing are recognized experts in their respective areas of concentration. The businesses are highly complementary and combining them allows Trimont to provide a unique and comprehensive service offering to the increasingly sophisticated CRE lending market,” said Bill Sexton, CEO of Trimont. “We look forward to welcoming the team from Wells Fargo, and working with them to capitalize on our strengths as we continue to deliver superior service and value to the clients of both businesses.”
“This transaction is consistent with Wells Fargo’s strategy of focusing on businesses that are core to our consumer and corporate clients,” said Kara McShane, Executive Vice President, and head of Wells Fargo Commercial Real Estate. “We remain committed to our market-leading Commercial Real Estate business, and we will continue to serve our clients with a broad suite of lending, advisory and capital markets capabilities while leveraging our franchise to grow our Corporate and Investment Bank.”
Funding for the transaction will be provided by Värde Partners, a global alternative investment firm, which acquired and has owned Trimont through certain funds since 2015. Värde has over a decade of experience owning and developing real estate servicing platforms and is committed to its long-term investment in Trimont.
“The addition of Wells Fargo’s Commercial Mortgage Servicing business is accretive to Trimont and will strengthen its market position for years to come,” said Jim Dunbar, Chair of Trimont and Partner at Värde Partners. “This strategically important transaction positions Trimont to be a key partner to real estate capital providers given its breadth and scale of services. We are very excited to welcome the Wells Fargo CMS team to Trimont and enthusiastic about the growth trajectory ahead of the combined business.”
The transaction is subject to customary closing conditions and is expected to be finalized in early 2025. Post-closing, Trimont will manage more than $715 billion in U.S. and international commercial real estate loans.
J.P. Morgan Securities LLC served as financial advisor with Goldman Sachs & Co. LLC providing additional advisory services while Kirkland & Ellis, Cadwalader, Wickersham & Taft LLP, and Trilegal served as legal advisors to Trimont and Värde Partners.
About Trimont LLC
Trimont (www.trimont.com) is a specialized global commercial real estate loan services provider and partner for lenders seeking the infrastructure and capabilities needed to help them scale their business and make informed, effective decisions related to the deployment, management and administration of commercial real estate secured credit.
Data-driven, collaborative and focused on commercial real estate, Trimont brings a distinctive mix of intelligent loan analysis, responsive communications, and unmatched administrative capabilities to clients seeking cost-effective solutions at scale.
Founded in 1988 and headquartered in Atlanta, Trimont’s team of 400+ employees serves a global client base from offices in Atlanta, Dallas, Kansas City, London, New York and Sydney. The firm currently has USD 240B in loans under management and serves clients with assets in 72 countries.
About Värde Partners
Värde Partners is a leading global alternative investment firm specializing in credit and credit-related assets. Founded in 1993, the firm has invested more than $100 billion across the credit quality and liquidity spectrum in both public and private markets. Värde currently manages over $13 billion in assets with teams in North America, Europe, and Asia Pacific focused on Corporate & Traded Credit, Real Estate, and Financial Services & Diversified Private Credit. For more information, please visit www.varde.com.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a leading financial services company that has approximately $1.9 trillion in assets. We provide a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, through our four reportable operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management. Wells Fargo ranked No. 34 on Fortune’s 2024 rankings of America’s largest corporations. In the communities we serve, the company focuses its social impact on building a sustainable, inclusive future for all by supporting housing affordability, small business growth, financial health, and a low-carbon economy.
For additional information, please contact:
Lauren Holmes
Executive Director, Marketing and Public Relations
Trimont
+1 404 581 7409
lholmes@trimont.com