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Angel Oak Capital Targets Institutional Capital Raise for $20 Billion in Non-Agency Mortgage Origination

Angel Oak Capital Advisors (“Angel Oak”), a leader in structured credit investment solutions, has raised approximately $1 billion in institutional equity capital on a year-to-date basis focusing on non-agency residential mortgage credit. Strategies managed by the firm are targeted to provide equity capital for approximately $20 billion in non-agency mortgage origination over the next two to three years.

Angel Oak’s ambitious capital raise seeks to further increase the firm’s market share in the non-agency mortgage market while delivering attractive risk-adjusted returns for its institutional investor base.

“Our institutional capital raising this year is a testament to our ability to provide structured credit solutions that resonate with yield-seeking institutions including sovereign wealth funds, global pensions, and insurance companies,” said Sreeni Prabhu, Managing Partner and Group Chief Investment Officer at Angel Oak Capital. “Angel Oak’s vertical integration and hands-on approach toward non-agency origination differentiates us in the marketplace. We continue to receive interest from globally recognized institutional investors, which bodes well for our capital raising efforts going forward.”

Angel Oak has led the resurgence of the private label non-agency market and established the Angel Oak Mortgage Trust (AOMT) securitization shelf as a market leader. Earlier this year, Angel Oak issued the first-of-its-kind social bond securitization, AOMT 2021-2. These accomplishments position the firm for further growth in the fourth quarter as it prepares for more institutional interest across commingled funds and customized solutions.

“Our non-agency investment strategies provide institutional investors with access to the residential mortgage market and importantly, diversification within their private credit portfolios away from corporate credit,” said Manish Valecha, CFA, Head of Client Solutions at Angel Oak Capital. “We believe owning the junior bonds from AOMT securitizations makes for a compelling investment especially in a zero-bound environment.”

About Angel Oak Capital Advisors, LLC

Angel Oak Capital Advisors is an investment management firm focused on providing compelling fixed-income investment solutions for its clients. Backed by a value-driven approach, Angel Oak Capital Advisors seeks to deliver attractive, risk-adjusted returns through a combination of stable current income and price appreciation. Its experienced investment team seeks the best opportunities in fixed income, with a specialization in mortgage-backed securities and other areas of structured credit.

For more information, please visit www.angeloakcapital.com.

Nothing presented herein is intended to constitute investment advice and no investment decision should be made based on any information provided. Nothing contained in this presentation shall be construed as an offer to sell securities or a solicitation of an offer to buy securities. Investments cited may not represent current or future holdings of Angel Oak Capital Advisors, LLC (“AOCA”) and nothing presented should be construed as a recommendation to purchase or sell a particular type of security or follow any investment technique or strategy. Information provided reflects AOCA’s views as of a particular time. Such views are subject to change at any point and AOCA shall not be obligated to provide any notice. Any forward-looking statements or forecasts are based on assumptions, and actual results are expected to vary from any such statements or forecasts. No reliance should be placed on any such statements or forecasts when making any investment decision. While AOCA has used reasonable efforts to obtain information from reliable sources, we make no representations or warranties as to the accuracy, reliability or completeness of third-party information presented herein. No guarantee of investment performance is being provided, and no inference to the contrary should be made.

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