Sabal Capital Partners, LLC, a diversified financial services firm specializing in commercial real estate, lending and investing, announced today that it has recently signed definitive agreements for the acquisition of a majority interest in the company by the Trident VII funds managed by Stone Point Capital LLC. Sabal is a leading small balance debt provider and servicer with a proven business platform and is widely recognized for its innovation. In addition, Sabal Investment Advisors, LLC, Sabal Investment Holdings, LLC and their managed funds will be merged into the Sabal platform to create a leading, vertically integrated lending, servicing and investment management platform focused on the small balance commercial real estate sector.
The pending acquisition is expected to further enhance Sabal’s growth and enable the company to expand its small balance commercial real estate loan offerings and to increase its footprint within the commercial real estate marketplace. Sabal will continue to be operated by its existing team, including Founder and CEO Pat Jackson and other senior members of management, all of whom will be making significant investments in the company alongside the Trident VII funds.
“This transaction signifies the next chapter for Sabal,” said Jackson. “With a firm foothold in the small balance debt sector already established, we understand the benefits of partnering with Stone Point Capital, an investment firm that focuses on financial services. Now, with their support, we are even better positioned to meet the expanded needs of our broker partners with additional debt instruments, while continuing to push the commercial finance arena forward with enhanced technology and efficiency solutions.”
This announcement follows several significant milestones for Sabal, including the company’s recent selection as a Seller/Servicer for Freddie Mac’s Targeted Affordable Housing Express Program and the ongoing, prolific loan origination and servicing volume that has positioned Sabal as one of the top Seller/Servicers for the Freddie Mac Small Balance Loan Program.
“Sabal’s disruption of the commercial real estate finance sector through technology-driven innovation is impressive,” said Chuck Davis, Chief Executive Officer of Stone Point Capital. “The loan volume, efficiency and reputation the company has established is remarkable, and we are excited to partner with Pat and his colleagues as they continue to provide superior service to the company’s clients and investors.”
The acquisition is expected to close in August 2018, subject to customary closing conditions and regulatory approvals.
Sabal Capital Partners and the sellers are represented by financial advisors Wells Fargo Securities, LLC and Beekman Advisors and by legal counsel Arnold & Porter LLP and Kirkland & Ellis LLP. Kramer Levin Naftalis & Frankel LLP serves as legal counsel for Stone Point Capital.