Fidelis closes $191.5M RTL securitization

Alternative asset manager Fidelis Investors announced on Thursday the closing of its fourth rated residential transition loan (RTL) securitization, FIDL 2026-RTL2, a two-year revolving, $191.5 million securitization backed by 381 residential transition loans across 24 lenders.

The closing comes amid growing demand for private lending solutions aimed at increased housing supply. The transaction is led by Unitas Funding LLC, a wholly owned subsidiary of Fidelis.

Rated by Morningstar DBRS and KBRA, the securitization marks several milestones for the residential transition loan market. Fidelis said it is the first manager to launch a second rated RTL securitization in 2026 and the first to close a transaction backed by KBRA-rated bonds.

Residential transition loans are typically used by real estate investors to finance the purchase and rehabilitation of properties, including fix-and-flip projects. Fidelis said the loans provide financing for housing rehabilitation projects that traditional lenders often do not support.

“From playing a major role in establishing the secondary market in residential transition lending to now bringing KBRA-rated bonds to market, Fidelis continues to drive the institutionalization of private real estate lending,” Brian Tortorella, managing partner at Fidelis, said in a statement.

“As the nation continues to contend with an intense housing affordability problem, investors are eager to support solutions that put more homes on the market while delivering strong opportunities for returns.”

Fidelis said investors are increasingly looking to private real estate lending as an opportunity to support housing rehabilitation while generating returns.

“The closing of our second rated RTL this year is a testament to the fact that, even as headlines repeatedly stress the private credit sector’s woes, investors remain deeply committed to private mortgage lending as an asset class,” Michael Tessitore, managing partner at Fidelis, said in a statement.

Jefferies served as sole bookrunner for the transaction.

“Fidelis’ continued growth is a testament to the company’s strong execution and best-in-class approach to the RTL sector,” said Jordan Rothstein, head of ABS trading and distribution at Jefferies.

Chris Schmidt, managing director at Jefferies, said the transaction was the first RTL securitization rated by two agencies and the first RTL transaction rated by KBRA.

Additional eligible residential transition loans may be added to the portfolio during future transfer periods, subject to the transaction’s eligibility criteria, Fidelis said.

This article was generated using HousingWire Automation and reviewed by a HousingWire editor before publication.