Key facts
- Fidelis Investors closed its fourth rated residential transition loan securitization, FIDL 2026-RTL2.
- The deal is valued at $191.5 million and has a two-year revolving structure.
- The securitization is backed by 381 residential transition loans from 24 lenders.
- The bonds received ratings from Morningstar DBRS and KBRA.
- This marks Fidelis' second rated RTL securitization in 2026 and the first with KBRA-rated bonds.
Alternative asset manager Fidelis Investors announced the closing of its fourth rated residential transition loan (RTL) securitization, FIDL 2026-RTL2. The $191.5 million, two-year revolving deal is backed by 381 residential transition loans from 24 different lenders and has received ratings from Morningstar DBRS and KBRA.
This transaction is significant as it marks Fidelis' second rated RTL securitization in 2026 and is the first to include KBRA-rated bonds. Residential transition loans are typically used by real estate investors for property acquisition and rehabilitation, often supporting projects that traditional lenders do not finance.
Brian Tortorella, managing partner at Fidelis, highlighted the securitization's role in addressing the housing affordability crisis by increasing the housing supply. Michael Tessitore, also a managing partner at Fidelis, noted that investor commitment to private mortgage lending remains strong despite broader concerns about the private credit sector.
Jefferies served as the sole bookrunner for the transaction. The firm's representatives, Jordan Rothstein and Chris Schmidt, praised Fidelis' execution and approach to the RTL sector, with Schmidt emphasizing that this was the first RTL securitization rated by two agencies and the first rated by KBRA. Fidelis indicated that additional eligible loans could be added to the portfolio in the future.