Reigo Doubles Securitization to $200 Million in Residential Bridge Loans
Fintech company that uses AI and machine learning techniques to transform the underwriting process achieves second securitization since June 2021, led by Cantor Fitzgerald; and closes a $13 million Series A funding used to expend R&D and operations
TEL AVIV, Israel (March 22), Reigo Investments, a global financial real estate technology company using data science and artificial intelligence (AI) to reshape the residential real estate debt market, today announced it has closed $100 million securitization of residential bridge loans led by Cantor Fitzgerald. The transaction marks the company’s second securitization completed since June 2021- a figure it has now doubled to $200 million. Reigo also today announced it has closed a $13 million Series A funding round led by Caesarea Medical Inc., a strategic investor in fintech, insurance, and private equity sectors. The financing will be used to fund Reigo’s continued US expansion and for further research and development investment in its platform.
“Cantor Fitzgerald is thrilled Reigo was able to upsize their inaugural securitization,” said Deirdre Harrington, Senior Managing Director at Cantor Fitzgerald. “We, along with their investors, continue to have confidence in their cutting-edge technology. We’re excited to watch Reigo’s future growth and believe it will have a positive impact on both the residential transaction loan (RTL) sector as well as expansion into other sectors.”
This is the first ever securitization in the short-term real estate debt market to include as part of its investment policy, the AI based ‘Reigo score’ criteria, thus recognizing the importance of the technology to reduce default rates and optimize the risk-adjusted return for investors. The securitization features a 24-month revolving period, after which the transaction will begin to amortize. The pool of loans is business purpose loans, 100 percent senior positions with 6-24 months term. The finalization of this deal enables Reigo to increase the maximum loan amount provided for single family residential (SFRs), multifamily, mixed-use, and ground-up construction properties.
According to recent research by Realtor.com, the US is now short of 5.24 million homes. However, despite the housing market expected to remain highly competitive for buyers in 2022 amid this supply shortage, the mortgage industry is anticipating lower business gains. For lenders to remain competitive, the need for flexible loan options has been a major driver in the success of Reigo’s platform.
Yariv Omer, CEO and Co-Founder, Reigo Investments commented, “the way real estate underwriting is done hasn’t been updated for years and is based on a limited number of parameters managed in old Excel spreadsheets. The lending community has realized these archaic systems are not capable of getting them to reach their full potential. With our AI-powered platform, we are focused on helping lenders avoid non-performing loans, make faster investment decisions, and create ultra-diverse portfolios across the US to set themselves apart among their borrowers.”
With a best-in-class professional real estate credit team combined with its in-house technology development team, Reigo has perfected its machine learning algorithms based on data gathered from hundreds of sources that scores, rates, and selects the best loans. Today, its algorithmic-based approach is redefining the entire underwriting experience by dramatically reducing non-performing loans, decreasing underwriting time from days to hours, and increasing portfolio diversification.
Reigo is a technology-driven investment manager focusing on the real estate bridge loan market. The company uses AI in the underwriting process to enable fast and safe investment decisions within 24 hours. Reigo partners with private real estate lenders around the United States to purchase and participate in residential real estate investment-purpose loans that the lenders originate. Since 2019, the company has participated in over 850 loans. Reigo was founded in 2018 by seasoned real estate and technology professionals with offices in New York and Tel Aviv.
For more information, please visit https://reigo-inv.com/.
About Cantor Fitzgerald
Cantor Fitzgerald, with over 12,000 employees, is a leading global financial services group at the forefront of financial and technological innovation and has been a proven and resilient leader for over 70 years. Cantor Fitzgerald & Co. is a preeminent investment bank serving more than 5,000 institutional clients around the world, recognized for its strengths in fixed income and equity capital markets, investment banking, SPAC underwriting and PIPE placements, prime brokerage, and commercial real estate on its global distribution platform. Cantor Fitzgerald & Co. is one of 24 primary dealers transacting business with the Federal Reserve Bank of New York.
For more information, please visit: www.cantor.com.