DENVER, CO - Greenline Ventures LLC announced that it has completed the acquisition of the New Markets Tax Credit (NMTC) division of Capmark Financial Group Inc. Since inception of the NMTC program, Capmark's NMTC division has closed over $1.1 billion of NMTC investment funds and financed over $2.5 billion of projects and businesses in low income communities nationwide.
Source: Greenline Ventures
The transaction enables Greenline, a newly formed company owned and managed by Capmark's former NMTC employees, to continue the tradition of leadership and innovation established in the NMTC industry underneath Capmark. Greenline will continue the group's historical business focus on (i) capital markets – including tax credit equity and debt syndication; (ii) fund management; (iii) investment origination; and (iv) NMTC compliance and asset management.
"We are very excited about this transaction. Our team has built a strong and successful track record of delivering private capital to communities nationwide that are underserved by traditional financial institutions. As a stand-alone company, we are well positioned to responsibly grow these investment activities while enhancing the positive impact on low income communities," says Patrick Vahey, President of Greenline Ventures.
Capmark, which filed for Chapter 11 bankruptcy protection in October 2009, evaluated various strategies to maximize the value of its successful NMTC division. Greenline's acquisition includes all of Capmark's non-loan assets associated with the NMTC program, including its: (a) managing member and administrative member interests in various community development entities; (b) management contracts with various NMTC investment funds; and (c) origination, asset management and servicing contracts with these entities.
As part of the transaction, affiliates of US Bancorp (US Bank) acquired the loan assets associated with Capmark's NMTC business. US Bank, the nation's leading tax credit investor in the NMTC program, also serves as the tax credit investor in a majority of the funds managed by Greenline.
Greenline Ventures LLC is a minority-owned finance company specializing in capital markets solutions for underserved communities nationwide.