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Bridge Lending Market Stays Ultra Competitive

LOS ANGELES—Thorofare Capital hits $54 million in bridge lending only four months after launching its recent fund, but the success is driven by their professional relationships, not an increased appetite for short-term financing.

By Kelsi Maree Borland | Updated on January 29, 2016
Felix Gutnikov: “Some of the newer platforms, coming into the market, are underwriting very aggressively because they want to quickly gain market share.” Felix Gutnikov: “Some of the newer platforms, coming into the market, are underwriting very aggressively because they want to quickly gain market share.”

LOS ANGELES—Thorofare Capital has originated $54 million in bridge financing through its Thorofare Asset Based Lending Fund IV. The fund launched at the end of October 2015, and is already ahead of schedule. According to Felix Gutnikov, EVP of origination at Thorofare Capital, the fund is excepted to hit $300 million, and with leverage, will have $450 million of buying power.

“We are definitely ahead of schedule. In the predecessor fund, we did half of this amount right out of the gate, so this is a very strong start,” Gutnikov tells GlobeSt.com. “We have some momentum because we were actively deploying capital in the third fund and the tail end of the Q4 2015 pipeline trickled into fund four.  We think the pipeline will remain pretty full and we should be hitting out volume goal. We aren’t going to overdo it.”

Although the fund has seen rapid success, Gutnikov says that there isn’t an increased appetite for bridge lending, and if anything, there is more competition. “We are benefitting from having relationships with brokers and borrowers that come back to us with repeat business. Even though there are new entrants into the bridge loan space, people have come back to us.  We are really benefitting from referrals from satisfied clients, and we are reaping the culmination of our hard work over the past five years.”

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