Former Freddie Mac CEO to Lead New Agency Lending Platform
David Brickman is CEO of a new joint venture between Meridian Capital Group and Barings.
Former Freddie Mac CEO David Brickman has been tapped to lead a new agency lending platform launched by commercial mortgage brokerage Meridian Capital Group and investment manager Barings.
Brickman will serve as chief executive officer of the new joint venture, which will acquire the assets and liabilities of Barings Multifamily Capital—including its licenses to participate in various lending programs—pending approval from various federal government-supported enterprises. It will also operate BMC’s agency loan origination and servicing businesses.
Subject to regulatory approval, the agency lending joint venture will participate in the Fannie Mae DUS program, the Freddie Mac Optigo network, and FGHA/GNMA-Ginnie Mae multifamily lending programs. It will also service commercial and multifamily loans for Barings’ parent company MassMutual, as well as other lenders.
That new name and branding is still TBA, which Meridian says will be revealed prior to the deal closing. Meridian will own a majority of the newly created standalone platform, with its ownership stake subject to increase over time, and will hold majority control of the entity’s board of directors. Day-to-day management will be delegated to Brickman and his management team.
Brickman’s trajectory at Freddie Mac coincided with a period of sustained growth in its multifamily business, in which annual production grew from $16 billion in 2010 to almost $80 billion in 2018. Brickman also led the creation of Freddie Mac’s flagship K-Deal securitization program.
“David did not just preside over a remarkable period of expansion at Freddie Mac; he did so through the type of innovation, creativity and ingenuity that are critical to thriving in today’s marketplace,” says said Ralph Herzka, chairman and CEO of Meridian Capital Group, in prepared remarks.
As he enters the private-sector, Brickman foresees strong originations for the year. “We have a significant opportunity to create one of the leading lenders in the multifamily commercial real estate space,” Brickman told Bloomberg this week. “The combination of low interest rates and what is hopefully going to be a degree of recovery and stabilization in 2021 with the vaccine and additional stimulus should result in a strong year with more than $300 billion in total origination.”
Brickman will also assume the role of executive chairman of Meridian, and senior advisor to private equity firm Stone Point Capital LLC, which holds a minority stake in Meridian.