Realty FinanceTrust Inc. has chosen Benefit Street Partners LLC to be its new externaladviser, bringing the mortgage REIT new board members and new executives.
With the change, Realty Finance Trust's new chairman and CEOis Richard Byrne, president of Benefit Street Partners. Appointed as RealtyFinance's CFO is Jerry Baglien, Benefit Street's commercial real estate CFO.Byrne and Baglien replace the previous executives, who were associated with theprevious adviser.
Realty Finance expanded its board to five directors andchose Jamie Handwerker and Buford Ortale to be independent directors.
Among the changes to Realty Finance's advisory agreement isthe calculation of the management fee, which is now based on stockholder equityinstead of assets. The annual performance fee will more closely align withstockholder interests, and acquisition fees will be eliminated after $600 millionin new investments. Disposition fees will also be eliminated.
Houlihan Lokey served as financial adviser to Benefit StreetPartners, and Ropes & Gray LLP served as legal counsel.