Ready Capital Buys Guaranteed Loan Originator Madison One
Ready Capital Corporation, a multi-strategy real estate finance company that originates, acquires, finances, and services small-to-medium balance commercial loans, has acquired Madison One Capital, M1 CUSO, and Madison One Lender Services, a government guaranteed loan originator and servicer focused on U.S. Department of Agriculture (USDA) and SBA guaranteed loan products.
Financial terms of the transaction were not disclosed.
The acquisition will increase Ready Capital’s presence in USDA financing through programs that provide guaranteed loans to small businesses and rural energy projects.
Ready Capital is the fourth largest originator of SBA 7(a) loans to small businesses.
“The transaction is expected to generate more than $300 million of USDA volume annually, expanding our government-guaranteed small business offerings, while increasing the company’s gain on sale earnings,” said Ready Capital CEO, Thomas Capasse.
Madison One will operate as a subsidiary of Ready Capital using its current name and brand. Madison One’s team, led by managing directors Jason Bengert, Chris Balestrino and servicing director Lindsey Billings have also joined. The Madison One business line will be managed by ReadyCap Lending, reporting to Gary Taylor, ReadyCap Lending CEO.
New York-based Ready Capital specializes in loans backed by commercial real estate, including agency multifamily, investor, construction, and bridge.