The fund, with an initial capital commitment of $300 million, is designed to purchase mortgage servicing rights (MSRs) and related securities. Rice Park aims to provide investors with a diversified portfolio of attractive MSR assets and establish itself as a reliable partner in the mortgage servicing industry.
RPMMF's strategy is to invest in MSRs and other associated securities from a select group of highly rated mortgage originators across the United States. Rice Park aims to diversify the fund's holdings across MSR sizes, loan types, and geographic coverage, giving investors exposure to different underlying product characteristics. Furthermore, the fund managers seek to optimize performance by actively managing the fund's portfolio of MSRs through a combination of portfolio optimization and hedging activities.
Rice Park Capital Management is led by a team of veteran finance professionals with extensive experience in alternative investments, particularly in the mortgage and financial services sectors. The firm has deep expertise in MSRs and residential mortgage-backed securities, and has worked extensively in the areas of mortgage financing, mortgage servicing, and securitization. The team has extensive knowledge in conducting due diligence and making portfolio decisions related to MSRs and understanding the dynamics of the mortgage servicing industry.
The new fund is a good fit for investors in search of reliable long-term returns from the mortgage servicing sector. It offers exposure to a diversified pool of MSRs that have less risk than individual transaction-based MSRs. Further, the fund's active management approach and portfolio optimization strategies reduce investors' exposure to market and credit risk while striving to generate attractive returns. With its experienced management team and proven track record investing in the mortgage and financial services industry, Rice Park is well-positioned to continue delivering reliable long-term returns from its new mortgage servicing rights fund.
This article was contributed on Nov 22, 2023
