KKR buys real estate lending platform Merchants Mortgage & Trust

KKR & Co. Inc. acquired real estate lending platform Merchants Mortgage & Trust Corp. LLC.

As a part of the transaction, Merchants Mortgage will also acquire the outstanding interests in its affiliate, Orchard Funding.

The Colorado-based Merchants Mortgage originated more than $500 million in loans to about 500 borrowers in 2021, according to a news release. Its CEO, Justin Land, and the existing management team will continue to lead the company.

KKR made its investment in Merchants Mortgage through its private credit funds and accounts as part of its asset-based finance investment strategy, according to the release. The financial terms of the transaction were not disclosed.

Hovde Group and Wells Fargo were the financial advisers to Merchants Mortgage, with Otteson Shapiro LLP and Hunton Andrews Kurth as legal advisers. Sidley Austin LLP was legal counsel to KKR for the transaction.