ABSAP specializes in mezzanine credit origination and aggregation. Our first fund is focused on consumer credit backed by residential real estate (second mortgages).
According to a recent CAAMP survey, 11% of home owners took out equity from their homes over the preceding 12 months totaling an estimated $63B, or $58,000 per household, for debt consolidation (33%), renovation (28%), investments (12%), purchases (11%), etc.
While the vast majority will take advantage of the low mortgage rates offered by deposit taking institutions, 20% ($13B per year) of the borrowers will be outside of the traditional lenders’ credit box due to lower credit score, self-employment, etc. The second mortgage market is currently very fragmented, with individual brokers matching borrowers and small private lenders.
ABSAP’s goal is to become the de facto second mortgage lender in the space while aggregating mezz credit exposure for investors.