Over the past decade, our Residential Opportunities platform has continued to build upon its expertise in residential debt. The team has evolved to earn recognition as an innovator and market leader in securitizing performing residential real estate loans and investing in single-family rental real estate.
Our Residential Opportunities strategies seek to drive value through a combination of capital appreciation and current income, investing primarily in mortgages, loans, and real assets, and leveraging our proprietary asset management platforms to enhance performance and drive value.
Cerberus is a pioneer in the global residential asset class with one of the most experienced, dedicated global teams navigating the United States and Western Europe mortgage sectors. Our careful asset selection, structuring expertise, and robust experience across various mortgage sub-asset classes differentiates us from other investors. We have a proven track record in successfully finding compelling, risk-adjusted investments across various market cycles.
In 2013, Cerberus and certain affiliated funds and accounts established FirstKey Mortgage, a proprietary operating company designed to provide a competitive advantage in loan acquisition and securitization. FirstKey Mortgage has over 50 employees and is a market leader that enhances our capabilities in collateral underwriting and selection, pre-securitization due diligence, rating agency collaboration, and securitization and distribution operations.
Single-Family Rental Homes
The U.S. single-family home market is vast with a market value greater than $38 trillion. Within that market, single-family rentals (“SFR”) represent an estimated 17 million units with a market value of more than $5 trillion that is almost entirely owned by non-institutional investors.
In 2014, Cerberus further expanded our capabilities in residential opportunities to provide institutional investors with direct access to the benefits of investing in diversified SFR portfolios. Cerberus manages SFR properties using a seasoned team of investment professionals and the resources and services of our affiliated property manager, FirstKey Homes. As a proprietary operating company, FirstKey Homes provides dedicated acquisition and property management services across 25 U.S. markets.
The Cerberus Team
The Cerberus Residential Opportunities team consists of more than 25 dedicated professionals with extensive and complementary residential expertise. We have considerable experience investing in residential mortgage securities and assets, and a wide array of product knowledge, including liquid interest rate products, single-family rental homes, performing and non-performing whole loans, servicing, mortgage servicing rights, securitization, contract finance, and indices.
Our team members bring years of knowledge from the sell-side, having worked in trading, structuring, securitization, modeling, banking, and sales for large mortgage-backed securities issuers. Every investment opportunity is rigorously vetted through detailed examinations of loan and industry data, dual-track credit and prepayment modeling, and identification of pricing inefficiencies.
Note: FirstKey Mortgage HR data as of July 1, 2022, and there can be no assurances that any of these professionals will remain with the company.
Source: U.S. single family home and rental market data is sourced from Board of Governors of the Federal Reserve System, December 31, 2021.
Note: FirstKey Homes data as of June 30, 2022.