Backflip, a leading real estate FinTech platform transforming how investors access and deploy capital, announced the closing of its inaugural securitization, BFLIP 2025-RTL1. The transaction includes $95 million in offered notes backed by residential transition loans (RTLs).
This milestone transaction follows the recent formation of Backflip’s asset management subsidiary, Backflip Asset Management, LLC, and highlights the benefits of the company’s vertically integrated model. Unlike traditional lenders, Backflip operates as a technology company, direct-to-borrower originator, primary loan servicer, and institutional asset manager. This end-to-end control allows for a differentiated borrower experience and superior data advantages, which led to its first securitization being oversubscribed.
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“Closing our first securitization is a watershed moment for Backflip and a strong endorsement of our strategy,” said Richard Porteous, Chief Investment Officer of Backflip. “Institutional investors recognized the value of our vertically integrated approach. By controlling the entire lifecycle of the loan — from origination to our in-house servicing — we provide a level of data integrity and asset management capability that is differentiated in the sector.”
The securitization reduces Backflip’s cost of capital and diversifies its funding profile, enabling the company to scale its support for residential real estate investors nationwide. The transaction was unrated and was well-received by a diverse group of institutional investors.
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The offered notes were in A1, A2, and M classes, all of which were sold. The structure includes a two-year revolving period, allowing repayments to be reinvested, creating a projected $300 million in additional capacity.
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Performance Trust Capital Partners, LLC served as sole structuring agent, bookrunner, and initial purchaser. Mayer Brown LLP acted as legal counsel to Backflip, and Morgan, Lewis & Bockius LLP represented Performance Trust. Setpoint performed third party due diligence services for the transaction.
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Source : prnewswire