New York MortgageTrust Inc. has agreed to acquire 100% of the membership interests ofasset manager RiverBanc LLC.
According to a regulatory filing, New York Mortgage Trust entereda membership interest purchase agreement with Donlon Family LLC and JMP InvestmentHoldings LLC.
Through a subsidiary, Hypotheca Capital, New York Mortgage Trustalready owned 20% of RiverBanc. As of March 31, RiverBanc managed about $371.5 millionof New York Mortgage Trust's capital.
Donlon Family and JMP will receive cash of about $24 millionunder the agreement; $3 million will be subject to a holdback at closing for DonlonFamily until the firm purchases $3 million worth of New York Mortgage Trust stock.
The deal was approved unanimously by New York Mortgage Trust'sboard with the exception of Douglas Neal, who abstained from discussion of the dealand the vote because he is the president of RiverBanc.