Canyon Partners Teams with A&D Mortgage, Imperial Fund in Push Toward $5B in Non-Agency MBS Securitizations
Canyon Partners has announced a strategic partnership with A&D Mortgage, a U.S. wholesale non-agency lender, and Imperial Fund Asset Management, an asset manager specializing in residential mortgage credit. As part of the collaboration, Canyon will invest $250 million, enabling A&D and Imperial to execute approximately $5 billion in non-agency mortgage-backed securitizations over the coming quarters.
The partnership brings together A&D’s loan origination and servicing capabilities with Imperial Fund’s structuring expertise and securitization track record. The mortgage collateral will be sourced and serviced by A&D, while Imperial will lead the structuring and execution of the securitizations.
“Our commitment underscores our confidence in the significant growth potential of the non-agency mortgage market,” said Adam Rizkalla, Managing Director at Canyon Partners. The non-agency space has seen renewed institutional interest amid shrinking agency footprints, wider credit spreads, and growing investor appetite for alternative sources of income.
This initiative is bolstered by A&D’s existing joint venture with Atlas Merchant Capital LLC, the investment firm led by Bob Diamond and David Schamis, which was announced in September 2024. That alliance has already expanded A&D’s origination capacity and operational reach.
Founded in 2005, A&D Mortgage has established itself as a major player in the non-agency space, having originated over $3 billion in mortgage loans in 2024 alone. Its position was recently strengthened through the acquisition of Flagstar Bank’s wholesale origination business from mortgage servicer Mr. Cooper Group Inc.
The first securitizations under the new partnership are expected to launch within the coming weeks.
ATLAS SP Partners, a securitized products and warehouse finance platform majority-owned by Apollo funds, served as exclusive financial advisor to Imperial Fund and Atlas Merchant Capital in connection with the transaction. ATLAS SP Partners specializes in tailored capital and advisory solutions across the structured credit and securitization markets.