Fidelis Investors Unveil First-Ever Rated RTL Securitization
Fidelis Investors, a prominent alternative asset manager overseeing more than $1 billion in assets, has announced the successful closing of its first-ever rated residential transition loan (RTL) securitization, FID 2025 RTL1. This landmark transaction enhances institutional investors’ access to housing rehabilitation financing and signifies Fidelis’ role in the ongoing development of the RTL market. Rated by Morningstar DBRS, FID 2025 RTL1 comprises 435 loans, representing approximately $150 million in current principal balance, which finance the rehabilitation of 517 housing units. This move offers institutional investors a transparent, standardized means to support housing rehabilitation projects and aligns with Fidelis’ commitment to addressing the housing supply deficit in the U.S.
The launch of this securitization is a culmination of Fidelis’ decade-long efforts in establishing a secondary market for RTL loans. The RTL sector has grown from a fragmented niche into a fully institutionalized asset class, and this milestone further strengthens the credibility and maturity of the market.
“This securitization is the next evolution of our forward-thinking approach to the RTL market,” stated Brian Tortorella, Managing Partner of Fidelis Investors. “Since 2013, we have been dedicated to creating liquidity through loan purchases and warehouse lines, playing an instrumental role in the formation of the first secondary market for RTL loans. With the closing of this inaugural transaction, we extend our deepest gratitude to the investors and partners who have supported us and our platform for more than a decade.”
Fidelis was represented in this groundbreaking transaction by Mayer Brown LLP, a leading international law firm specializing in RTL markets. Jefferies served as the lead manager and bookrunner.
“Jefferies is very proud to assist Fidelis Investors on their inaugural RTL securitization. We are pleased to support the company in achieving this significant milestone in its corporate history with their entrance into the rated public capital markets,” said Christopher Schmidt, Managing Director at Jefferies. “We look forward to working together on many future successful transactions in the coming months and years ahead.”
This securitization is structured to cater to the increasing demand among institutional investors for high-quality, fixed-income investment opportunities. At the same time, it addresses the challenge posed by the U.S.’s aging housing stock and limited inventory. Rated RTL securitizations enable investors to access an essential sector at a time when the country faces a housing deficit of between 2-5 million units. By bringing transparency and scalability to an asset class vital to housing rehabilitation, this transaction bridges institutional capital with much-needed housing solutions.
“As the RTL market matures, Fidelis remains committed to innovation—connecting institutional capital to housing solutions with enhanced transparency, liquidity, and standardization,” commented Michael Tessitore, Managing Partner of Fidelis Investors. “This rated securitization is the culmination of our work in the RTL sector and reflects our readiness as a firm to lead in its next phase of growth.”
Fidelis’ involvement in the RTL sector extends over a decade, with the firm’s leadership having played a key role in its evolution. Since first entering the market while at Five Mile Capital Partners, the Fidelis management team has invested approximately $4.5 billion in housing and structured finance solutions. These investments have provided much-needed liquidity to the housing market, helping to create a robust framework for housing rehabilitation financing. The firm has worked closely with local lenders to build a secondary market where none previously existed, ensuring that financing is available to support housing development initiatives.
By securing institutional capital through rated RTL securitizations, Fidelis continues to solidify its position as a leader in the space. This latest transaction builds on the company’s legacy of innovation in structured finance, bringing increased credibility, liquidity, and standardization to the sector.
The success of FID 2025 RTL1 marks an important step forward for the broader RTL market. As institutional participation increases, the market is expected to experience enhanced liquidity and greater access to capital, benefiting both investors and the housing sector.
Fidelis Investors remains committed to advancing the RTL industry through strategic investments and partnerships that drive growth and stability. By pioneering new financing solutions and leveraging deep market expertise, Fidelis is helping to shape the future of residential transition lending—bridging the gap between institutional capital and housing rehabilitation needs. This securitization serves as a testament to the firm’s dedication to fostering an efficient, transparent, and scalable investment landscape for residential transition loans.
As the firm continues to push the boundaries of innovation in structured finance, future securitizations and investment opportunities will further reinforce its leadership in the space. With a clear vision and a strong foundation, Fidelis Investors is poised to drive meaningful change in the housing market, ensuring sustainable growth and long-term value for investors and communities alike.
