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April 2024 » thefivestar.com 23 April 2024 I N D U S T R Y U P D A T E newly originated and secondary residen- tial mortgage whole loans, primarily via customized separately managed accounts (SMAs). This opportunity comes at a time when insurance companies are seeking diverse, higher-yielding solu- tions, branching out from traditional corporate bond and commercial real estate exposure. Against the backdrop of the broader fixed-income macro envi- ronment, insurers see value in accessing the residential home loan market, which they have underinvested in for more than a decade. The firm has already seen trac- tion with this initiative, most recently securing a $200 million capital commit- ment from a large insurance institution. Including this initiative, Angel Oak's private debt strategies have the capacity of deploying approximately $5 billion in mortgage loan purchases across non- qualified, second-lien, home equity line of credit (HELOC), and agency mortgag- es. In addition, the firm will continue to look for opportunities to invest in sectors that banks have exited due to regulatory requirements. Angel Oak also anticipates coming to market later this year with a securitization composed primarily of HELOC loans. "Since inception, Angel Oak has served many insurance companies, identifying and addressing the specific challenges they encounter," said Sreeni Prabhu, Co-CEO and Managing Partner of Angel Oak. "Our bespoke whole loan SMAs, in tandem with our securitiza- tion-focused private strategies, have sig- nificantly fortified our relationships with institutional clients. We see immense op- portunity to deliver attractive risk-adjust- ed returns for a larger insurance client base with this dedicated effort." Angel Oak can source loans through various channels, including through its affiliate lender Angel Oak Mortgage Solutions, which the firm believes is a key differentiator from other investment managers offering residential credit solutions. In recent months, the firm has expanded into commercial lending with the hiring of institutional commercial real estate veteran Sumit Sasidharan and offers insurance companies access to commercial mortgages as part of its product suite. Spearheading this initiative are Man- ish Valecha, Head of Client Solutions at Angel Oak, and Bernard Dzata, Man- aging Director of Institutional Business Development. Both Manish and Bernard will work closely with insurers to build bespoke investment solutions tailored to each insurer's specific goals and risk tolerance. "We are just scratching the surface in terms of providing capital-efficient solutions for insurance companies on the whole loan front," Manish said. "Our institutional team has dedicated substantial resources to underscoring the advantages of our vertically integrat- ed model, fostering partnerships with insurance companies. Furthermore, we believe our long track record in mortgage origination, going back more than 10 years, is a key differentiating factor in an uncertain economic environment." CORNERSTONE ADVISORS ACQUIRES MAPLE STREET C ornerstone Advisors, a manage- ment and technology consultan- cy for banks, credit unions, and fintech firms, announced it has complet- ed its acquisition of Maple Street, a pro- vider of vendor management solutions and services for banks and credit unions. "Maple Street is a highly respected company that has been serving hundreds of financial institutions nationwide since its inception in 2003," said Scott Sommer, CEO at Cornerstone Advisors. "The firm has built a robust vendor management offering supported by a team of profes- sionals dedicated to helping banks and credit unions reduce vendor expenses, improve vendor performance and man- age risk. Maple Street's offerings as well as its people, values and culture are stra- tegically aligned with Cornerstone's. This acquisition brings tremendous value not only to Cornerstone and our clients, but also to the financial services industry at large. We are excited to welcome everyone at Maple Street to our growing organization," Sommer said. Based in Orlando, Florida, Maple Street services are delivered through its Vendor Advantage System. The system provides the means for banks and credit unions to manage the full vendor lifecycle across their organizations, "Since inception, Angel Oak has served many insurance companies, identifying and addressing the specific challenges they encounter." —Sreeni Prabhu, Co-CEO and Managing Partner, Angel Oak