Fountainhead Commercial Capital announced that alternative asset manager Magnetar Capital, through its affiliated funds, invested $23 million in a Series A round of equity financing, joining an affiliate of 20 Gates Management, a New York-based asset management firm, as the first two institutional investors in Fountainhead. The funding will enable the SBA 504 lender to expand its footprint to offer owner-occupied commercial real estate loans across the country.
“Magnetar is strategic partner that allows up to leverage our operations nationwide, as we build a stronger position from which to provide credit for small business owners and advance our mission to become the leading SBA 504 lender,” said Chris Hurn, Founder/CEO of Fountainhead.
“Since launching last year, Fountainhead has used tech-enabled solutions to dramatically accelerate the traditional originating, structuring, approval and closing times for financing commercial real estate,” said Magnetar Capital Fixed Income Portfolio Manager Michael Henriques. “Fountainhead is filling a void in the market and will help provide credit to qualifying small business owners.”
“Commercial real estate ownership is an important wealth creation strategy, and we fully believe every healthy small business in America should consider it. Through the 504 loan, we are providing a compelling alternative during what is a challenging time in commercial banking. Expertise, speed, and competitive pricing and terms from commercial lenders are what is expected. Fountainhead delivers these, while banks and other lenders increasingly do not,” said Hurn. [Read more…]