Redwood Trust Inc. agreed to acquire CoreVest American Finance Lender LLC and several of its affiliates from certain affiliates of Fortress Investment Group LLC's credit funds business and CoreVest Management Partners LLC.
Consideration for the acquisition is approximately $490 million, net of in-place financing on the financial assets. The amount will be funded with a mix of cash on hand and shares of Redwood's stock.
Under the deal, Redwood will acquire CoreVest's operating platform and assets, including its business-purpose loan portfolio and subordinate bonds from the company's sponsored securitizations. The acquisition includes CoreVest's operating platform and over $900 million of related financial assets.
The acquisition is expected to close within the next two to three business days.