Veleta Capital Partners creates a premier institutional lending platform for multifamily and commercial real estate assets
Oaktree acquires minority stake in Veleta Capital
LOS ANGELES, CALIF. – April 5, 2022 – Veleta Capital, LLC (“Veleta Capital”) and funds managed by Oaktree Capital Management, L.P. (“Oaktree”) today announced the formal launch of a strategic joint venture, Veleta Capital Partners (“VCP”), creating a premier institutional lending platform for multifamily and commercial real estate assets. Oaktree has also acquired a minority stake in Veleta Capital.
Veleta Capital Partners is a real estate lending platform headquartered in Los Angeles. The management team has an established track record with deep relationships across multifamily and commercial real estate lending and ancillary services around it, including underwriting, construction, servicing, and more.
Oaktree is a leader among global investment managers specializing in alternative investments, including credit, private equity, real assets and listed equities.
VCP will focus on quality markets, assets and sponsors, combining Oaktree’s strength in global real estate and credit investment with Veleta Capital’s integrated platform and trusted team of real estate credit and investment professionals. The joint venture will provide short-term, senior secured loans on multifamily and commercial real estate assets. Alternative commercial assets including self-storage, cold storage, medical office properties, data centers, industrial, and warehouse properties are targets in the strategy.
Veleta Capital will leverage the joint venture partnership with Oaktree to provide certainty of execution to real estate investors seeking comprehensive resources and lending solutions for value-add and opportunistic transactions.
“We are excited to partner with Oaktree to create Veleta Capital Partners, the first vertical in a planned series of real estate lending and investment strategies,” said Brian Murphy, Veleta Capital’s Managing Partner and Chief Executive Officer. “Short-term, value-add, and opportunistic lending will always be core to Veleta Capital’s strategy, and this partnership with Oaktree is a significant step toward our goals of including more comprehensive lending and technology solutions, new verticals, and strategic alliance initiatives. We have already seen the value of combining our experienced team and strategic relationships with Oaktree’s access to capital, resources, and expertise, and look forward to the opportunities ahead.”
“Oaktree is an ideal strategic partner for this new venture,” said Andrew Marcus, Veleta Capital’s Managing Partner and Chief Operating Officer. “The firm’s global real estate credit and investment strength, coupled with a growth capital investment in our company, will allow us to quickly build a premier multifamily and commercial real estate finance and investment management platform.”
“We are pleased to partner with the experienced team at Veleta Capital and have been impressed by the firm’s full-service platform and extensive network of strategic relationships,” said Kaj Vazales, Co-Head of North America for Oaktree’s Global Opportunities strategy. “Together, we are forming a new platform that is specifically built for institutional standardization in the highly fractured and underdeveloped transitional multifamily marketplace, and we are confident that VCP will be able to scale quickly and capture sizable market share.”
Veleta Capital Partners is targeting 12 to 36-month senior secured transition loans for multifamily and commercial real estate assets of up to $20 million. The firm will initially be focused on Tier I and Tier II submarkets, predominantly in the Western United States, including Southern California, Arizona, Colorado, Nevada, Oregon, Texas, Utah, and Washington and evaluate other opportunistic transactions nationwide.
