Overview
ALLY Global Management ("ALLY") and Range Real Estate Partners ("RANGE") have made a strategic investment in iBorrow, a private real estate lender based in Los Angeles. This move aims to capitalize on the current market conditions and expand their credit offerings.
Key Takeaways
- Strategic Investment: ALLY and RANGE have invested in iBorrow through the ALLY USA Real Estate Fund ("AUSRE").
- Market Opportunity: The investment comes at a time when traditional lenders are pulling back, creating opportunities for private lenders.
- Leadership: RANGE founder Simon Gluck will join iBorrow’s board.
- Global Reach: The investment will help expand product offerings to the Asian market.
Investment Details
The investment in iBorrow was made through the ALLY USA Real Estate Fund ("AUSRE"), a real estate platform managed by ALLY and RANGE. AUSRE closed its inaugural special situations fund, AUSRE I, in March 2024. The fund’s limited partners include leading institutions and significant family offices from Asia. To accommodate strong interest from the Asia Pacific region, Ally USA formed its VCC fund, domiciled in Singapore.
Teerapong Ninvoraskul, former head of private assets for the Thai Government Pension Fund, has joined the advisory board. ALLY RANGE is headquartered in New York, with offices in Los Angeles, Singapore, and Bangkok.
Market Context
This investment comes at a time when traditional lenders have pulled back their lending, creating a significant void that private lenders like iBorrow are filling. The current environment provides a tremendous opportunity for private lenders to deploy significant capital, offering attractive absolute and risk-adjusted returns.
Leadership and Vision
As part of the transaction, RANGE founder Simon Gluck will join the board of iBorrow in an active partner capacity. "iBorrow has navigated the current climate very well, has built a robust national network of borrowers, and in combination with the launch of its residential platform, is very well positioned for the current market environment," said co-founders Kris Eiamsakulrat & Simon Gluck in a joint statement.
Future Prospects
"We are excited to welcome ALLY RANGE as our partners, as they bring a wealth of experience and relationships that will enable us to better realize the market opportunity that exists," said Harlan Peltz, Partner at iBorrow. "At this crucial time, we are well-positioned to help savvy entrepreneurs and investors realize their ambitions through smart investments in multifamily and single-family residential, industrial, hospitality, and retail real estate. The market is offering some incredible opportunities right now, and we look forward to a promising future."
Conclusion
The strategic investment by ALLY and RANGE into iBorrow marks a significant step in expanding their credit reach and capitalizing on current market opportunities. With strong leadership and a robust network, the partnership is well-positioned for future growth and success.
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