TPG Mortgage Investment Trust to Acquire Cherry Hill Mortgage
TPG Mortgage Investment Trust Inc. has agreed to acquire Cherry Hill Mortgage Investment Corp. in a stock-and-cash transaction valued at approximately $117.5 million, creating a larger residential mortgage REIT with a $9 billion investment portfolio.
Under the agreement, Cherry Hill shareholders will receive 0.3063 shares of MITT common stock and $0.93 in cash for each share held. Based on MITT’s Aug. 7 closing price, the consideration implies a value of $3.10 per Cherry Hill share, a 29% premium to its unaffected closing price and a 32% premium to its 30-day volume-weighted average.
The transaction is expected to close in the fourth quarter of 2026. MITT shareholders are expected to own about 73% of the combined company’s equity, with former Cherry Hill shareholders owning the remaining 27%.
Cherry Hill shareholders will receive about 30% of the merger consideration in cash. TPG will contribute approximately $20 million, or $0.52 per share, while MITT will fund roughly $15 million, or $0.41 per share, from its balance sheet.
The combined portfolio will be composed of approximately 72% non-agency residential credit, 14.4% agency residential mortgage-backed securities and mortgage servicing rights, 12.6% home equity investments and 1% other assets.
“We are excited to bring together two highly complementary portfolios to significantly enhance the scale of MITT’s residential mortgage platform,” T.J. Durkin, MITT’s president and chief executive officer, said.
Following the merger, the company will continue to operate as TPG Mortgage Investment Trust, led by MITT’s existing management team, including Durkin. The combined company will be headquartered in New York, and its shares will remain listed on the New York Stock Exchange under the MITT ticker.
Piper Sandler & Co. is acting as exclusive financial advisor and Hunton Andrews Kurth LLP and Freshfields LLP are acting as legal counsel to MITT. Fried, Frank, Harris, Shriver & Jacobson LLP is acting as legal counsel to MITT’s independent directors. BTIG, LLC is acting as exclusive financial advisor and Mayer Brown LLP is acting as legal advisor to CHMI.
Connect Money is spotlighting rising stars who have made a valuable contribution to the alternative investments industry. Based on your nomination, we will recognize professionals who have significantly influenced both the workplace and community. The deadline is September 9. Click here to submit your nominations and help us highlight the next generation of leaders.
