Fidelis Investors Closes Second Rated RTL Securitization Amid Tariff Volatility

Fidelis Investors closed its second rated RTL securitization, FID 2025-RTL2, worth $144.525mm. The transaction demonstrates continued demand for the asset class despite recent market volatility. Fidelis aims to institutionalize the RTL market and provide repeatable capital markets solutions. The securitization was oversubscribed, with both repeat participants and new investors joining the book.

Fidelis Investors, a leading alternative asset manager, has closed its second rated Residential Transition Loan (RTL) securitization, FID 2025-RTL2, totaling $144.525 million. This transaction underscores the continued demand for the RTL asset class despite recent market volatility, particularly due to tariff disruptions.

The securitization, rated by Morningstar DBRS, is a two-year revolving structure backed by 308 RTLs across 24 different lenders, led by Unitas Funding, LLC, a subsidiary of Fidelis. The transaction marks another significant step in Fidelis' mission to bring scale, structure, and transparency to the RTL market, while broadening institutional investor access to housing rehabilitation financing.

FID 2025-RTL2 follows the firm's inaugural securitization in February 2025 and was oversubscribed across all tranches, with both repeat participants and new investors joining the book. This strong demand reflects growing familiarity with RTLs as an asset class and confidence in the Fidelis platform.

"The market response to this transaction validates our approach and demonstrates that more investors are becoming comfortable with and excited about this asset class," said Michael Tessitore, Managing Partner at Fidelis Investors.

The transaction comes after a brief market slowdown earlier this year due to tariff-related disruptions. Activity has since normalized, and current yields are largely in line with pre-tariff levels. Fidelis' ability to execute another securitization so soon after its first reflects its long-term vision to become a programmatic issuer, offering investors repeatable access to this emerging asset class.

Jefferies, which served as the sole lead manager and bookrunner, commended Fidelis' ability to drive best-in-class securitization pricing with a well-diversified orderbook.

About Fidelis Investors
Founded in 2020 and headquartered in Cranford, New Jersey, Fidelis Investors is an alternative asset manager serving institutional investors with strategies across mortgage debt, structured finance, asset-based lending, and real estate. Fidelis has invested approximately $4.5 billion through 16 Mortgage & Real Estate Debt Funds and continues to lead efforts to modernize access to housing-related credit with transparent, scalable solutions.

References:
[1] https://www.businesswire.com/news/home/20250723089793/en/Fidelis-Investors-Closes-Second-Rated-RTL-Securitization-FID-2025-RTL2-Illustrating-Continued-Demand-Amid-Tariff-Volatility