SOURCE: Genesis Capital

January 30, 2014 10:58 ET

Genesis Capital, LLC, Expands With Investment From Oaktree Funds

Oaktree Funds Investing up to $100 million in New Fund Under Genesis Capital's Lending Platform With Anticipated Increase to up to $250 Million

LOS ANGELES, CA--(Marketwired - Jan 30, 2014) - Genesis Capital, LLC, an investment manager for funds focused on investing in commercial loans in the residential real estate markets, today announced plans to expand its business operation following a direct investment provided by certain investment funds managed by Oaktree Capital Management, L.P., through certain subsidiaries. Genesis Capital, through fund vehicles that it manages, provides short-term loans to qualified real estate investors active in the distressed, single-family home marketplace. An affiliate of the Oaktree funds has also committed up to $100 million to a new vehicle formed by Genesis Capital to invest in loans made to these investors. The Oaktree investment in this new vehicle can be increased to up to $250 million following Genesis Capital's registration as an investment adviser with the Securities and Exchange Commission. Genesis Capital is led by Trixy Weiss, President and Chief Executive Officer; Robert Wasmund, Senior Managing Director; and Andrew Smith, Senior Managing Director.

"Forging a relationship with Oaktree is an integral step in the growth of Genesis Capital," said Trixy Weiss. "The corporate investment in Genesis Capital will be utilized to expand our operations, talent and geographic footprint. The fund investment will help us meet heightened demand for residential real estate financing."

Funds managed by Genesis Capital have been providing commercial loans to residential real estate investors since 2007. Genesis Capital focuses on borrowers that have deep expertise in the purchase, renovation and sale of single-family assets, with the aim of identifying those that are well capitalized and have established records of success in the REO market.

Genesis Capital also operates in conjunction with its sister organization, Genesis Auctions, an internet-based disposition platform providing distressed single-family home product for sale and investment. The Genesis Auctions platform enjoys wide access to both real-estate owned and non-performing assets from banks, servicers and private sellers. Genesis Auctions has completed asset dispositions across all 50 states and currently has thousands of fully vetted national and local/regional buyers and borrowers registered on the platform.

"Led by an experienced management team, Genesis Capital is well prepared to capitalize on strong market demand for investor financing of distressed residential home properties," said Brian Laibow, Managing Director, Oaktree Capital Management, L.P. "With shadow inventory still significant, and sister firm Genesis Auctions' ability to access it directly from banks, servicers and private sellers, Oaktree recognized the firm's competitive advantages in this lending market, as well as the benefits of making investments in the firm and this new fund."

Genesis Capital will continue to operate its fully-integrated, specialty lending platform, with plans to grow its geographic footprint to accommodate the financing needs of investors in additional markets. Currently operating solely within the state of California, the firm plans to announce an expansion of its funds' financing offerings into additional U.S. states experiencing similar investor demand and home inventory.

Headquartered in Los Angeles, the firm is experiencing rapid growth as a result of the company maximizing opportunities and capitalizing on market conditions within both the finance and real estate industries. Genesis Capital expects to hire additional talent to fill positions in support of the expansion of its lending platform.

"As we move into additional residential markets, we are actively looking to hire talent to support that growth," added Weiss. "Oaktree's investment provides additional capital for real estate investor finance solutions and allows us to capitalize on the opportunities in additional regions with new hires."

About The Genesis Family of Companies:

Funds managed by Genesis Capital have been providing financing to residential investors since 2007. These funds provide capital to investor borrowers who are active in the pursuit of distressed assets for a buy, refurbish and re-sell investment strategy . The Genesis Auctions platform enjoys wide access to both real-estate owned and non-performing assets from banks, servicers and private sellers. Genesis Auctions has completed asset dispositions across all 50 states and currently has thousands of fully vetted national and local/regional buyers and borrowers registered on the platform. A privately held company, Genesis Capital and Genesis Auctions are headquartered in Los Angeles. Visit the company online at www.genesiscapital.com or www.genesisauctions.com.

About Oaktree:

Oaktree Capital Management, L.P. (together with its affiliates) is a leader among global investment managers specializing in alternative markets, with $79.8 billion in assets under management as of September 30, 2013. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in distressed debt, corporate debt (including high yield debt and senior loans), control investing, convertible securities, real estate and listed equities. Headquartered in Los Angeles, the firm has over 750 employees and offices in 15 cities worldwide. For additional information, please Oaktree's website at http:// www.oaktreecapital.com

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