NEW YORK, June 11, 2024 (GLOBE NEWSWIRE) -- Ready Capital Corporation (NYSE: RC) ("Ready Capital" or the "Company"), a multi-strategy real estate finance company that originates, acquires, finances and services small-to-medium balance commercial loans, today announced that it has acquired Madison One Capital, M1 CUSO and Madison One Lender Services (together, "Madison One"), a leading originator and servicer in the highly profitable government guaranteed loan industry focusing on United States Department of Agriculture ("USDA") and SBA guaranteed loan products. Terms of the transaction were not disclosed.
The transaction will expand Ready Capital's presence in USDA lending through programs that support guaranteed loans for small businesses and energy projects in rural areas. The addition of Madison One, a leading USDA lender and servicer, meets Ready Capital's objective to diversify revenue sources and increase scale of gain-on-sale businesses. Ready Capital is already the fourth largest originator of SBA 7(a) loans to small businesses.
Ready Capital Chief Executive Officer, Thomas Capasse said: "We're excited to acquire Madison One, a leading USDA loan originator and servicer. 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."
"Partnering with Ready Capital gives Madison One a direct balance sheet, enabling growth of our USDA platform and more flexible financing for rural clients," said Jason Bengert, a Managing Director of Madison One. Chris Balestrino, also a Managing Director of Madison One, added that "We look forward to the many synergies we can benefit from as part of a larger platform, positioning us to extend even more capital into rural America."
Madison One will operate as a subsidiary of Ready Capital using its current name and brand. Madison One's entire team, led by Managing Directors Jason Bengert, Chris Balestrino and Servicing Director Lindsey Billings have joined the new subsidiary. The Madison One business line will be managed by ReadyCap Lending, reporting to Gary Taylor, ReadyCap Lending CEO.
Ready Capital was advised by Harbor View Advisors and Alston & Bird LLP served as legal counsel in this transaction. Madison One was advised by Burntside Advisors with legal counsel provided by the Lewis Firm.
About Ready Capital Corporation
Ready Capital Corporation (NYSE: RC) is a multi-strategy real estate finance company that originates, acquires, finances and services lower-to-middle-market investor and owner occupied commercial real estate loans. The Company specializes in loans backed by commercial real estate, including agency multifamily, investor, construction, and bridge as well as U.S. Small Business Administration loans under its Section 7(a) program. Headquartered in New York, New York, the Company employs approximately 350 professionals nationwide.
About Madison One
Madison One is a leading originator and servicer in the highly profitable government guaranteed loan industry focusing on USDA and SBA guaranteed loan products. Madison One is headquartered in Scottsdale, Arizona and employs 30 professionals. For more information visit https://www.madisonone.com.
Contact
Investor Relations
212-257-4666
InvestorRelations@readycapital.com
Media Relations
PR@readycapital.com
