Canyon Partners Teams Up to Revolutionize Non-Agency Mortgage Securitization with $5 Billion Initiative

Canyon Partners Forms Strategic Alliance in Mortgage Market

Canyon Partners, a leading global alternative investment manager with assets amounting to $28 billion, has recently solidified a strategic partnership that marks a significant advancement in the non-agency mortgage sector. This collaborative effort involves A&D Mortgage, a prominent wholesale lender, and Imperial Fund Asset Management, which specializes in managing residential mortgages. The partnership, announced on August 4, 2025, aims to facilitate approximately $5 billion in non-agency mortgage securitizations—an ambitious goal that underscores the increasing demand for innovative financing options within the housing market.

The deal is expected to leverage Canyon's financial commitment of $250 million to support A&D and Imperial in executing these securitizations. The collaboration not only aims to enhance market liquidity but also seeks to improve investment access to high-quality mortgage-backed securities for a broad range of investors. A&D Mortgage's established reputation as one of the largest wholesale non-agency lenders in the United States adds considerable weight to this initiative, thanks to their efficient origination platform and expansive product suite.

Leading this venture is Imperial Fund, a seasoned player in the residential mortgage-backed securities landscape that has successfully executed 25 securitizations since 2020. The company's expertise in structuring and managing securitizations will play a crucial role in ensuring successful transaction executions.

Emphasis on Quality and Accessibility

A&D Mortgage has built an impressive track record since its inception in 2005, originating high-quality mortgage assets worth over $3 billion in 2024 alone. Their recent acquisition of Flagstar Bank's wholesale origination business marks a pivotal moment in strengthening their position in the non-agency segment, resonating well with the current market dynamics. This acquisition not only broadens A&D's market share but also enhances their capacity to deliver a greater volume of mortgage collateral for securitization.

Adam Rizkalla, Managing Director at Canyon Partners, expressed enthusiasm about the partnership, highlighting the collective strength of the involved firms. He underscored the potential for significant growth in the non-agency mortgage market, positioning this collaboration as an important step toward achieving both attractive returns for investors and contributing positively to housing market stability.

Max Slyusarchuk, CEO of A&D Mortgage and Co-Founder of Imperial Fund, resonated with Rickalla's sentiments, emphasizing the high quality of their non-agency originations and borrower-focused lending approach. Slyusarchuk is optimistic about how this collaboration will enable their firm to expand its reach and provide innovative mortgage solutions.

Furthermore, Bob Diamond, CEO of Atlas Merchant Capital, one of the strategic partners involved, expressed admiration for the robust organizational structure at Canyon Partners and their proven track record. Diamond stated that AD is well-positioned to capitalize on the growth opportunities within the non-agency market.

Looking Ahead

The partnership is set to begin immediately, with initial securitization transactions expected to launch soon. ATLAS SP Partners acted as the exclusive financial advisor to Imperial and Atlas Merchant Capital during this transaction, showcasing their commitment to delivering tailored advisory solutions in the structured credit landscape.

This collaboration not only signals increased innovation in the mortgage securitization space but also reiterates the ongoing evolution of investment strategies in response to changing market demands. As the landscape continues to adapt, stakeholders in this partnership are optimistic about the positive impact it will have on the availability and stability of residential financing options across the board.

Overall, Canyon Partners' foresight in entering this partnership highlights a strategic move toward enhancing liquidity and efficiency in the non-agency mortgage market, paving the way for future collaborative ventures across the financial services sector.