Fidelis Investors, an alternative asset manager with more than $1 billion in assets under management, on Wednesday announced the closing of its second-rated securitization of residential transition loans (RTLs)

The deal, which was reportedly oversubscribed in every tranche by new and returning investors, follows Fidelis’s first securitization in February 2025. The deal represents another milestone in Fidelis’s ongoing effort to bring greater scale, structure and transparency to the RTL market, while expanding institutional access to housing rehab financing.

Rated by Morningstar DBRS, it’s a $144.525 million, two-year revolving securitization backed by 308 RTLs originated by 24 different lenders.

The pool is led by Unitas Funding LLC, a wholly owned subsidiary of Fidelis. Additional qualifying RTLs may be added in future transfer windows, in line with the transaction’s eligibility requirements, according to a press release from Fidelis.

“This second RTL securitization continues our mission to institutionalize the asset class while creating investor access to an underserved but essential segment of the housing market,” said Brian Tortorella, managing partner at Fidelis Investors. “With a seasoned and standardized platform, Fidelis is building repeatable capital markets solutions that connect institutional demand to America’s housing supply challenge.”

Fidelis’ second RTL securitization comes at a time when the U.S. home-flipping market is showing signs of strain. According to ATTOM’s Q1 2025 Home Flipping Report, the number of flipped properties dropped to a six-year low. Gross profits and returns on investment continued to decline amid rising acquisition costs and shrinking margins.

A market slowdown earlier this year caused by tariff-related disruptions temporarily halted issuance activity too. Since then, the market has stabilized, with yields returning to pre-tariff levels.

Despite these pressures, demand for financing remains steady in many markets, particularly among experienced investors seeking flexible capital.

“Jefferies commends Fidelis’ ability to drive best-in-class securitization pricing with a well-diversified orderbook,” said Michael Wade, co-head of the securitized markets group and capital markets at Jefferies, which served as the sole lead manager and bookrunner.

“We look forward to continuing to support Fidelis’ mission as they become a programmatic securitization issuer and mainstay in the capital markets ecosystem.”

“We are pleased to be part of the ongoing growth of the Fidelis enterprise, as they continue to separate themselves as a premier leader in the RTL securitization, origination and asset management space,” added Christopher Schmidt, managing director at Jefferies.

“The market response to this transaction validates our approach and demonstrates that more investors are becoming comfortable with and excited about this asset class,” said Michael Tessitore, managing partner at Fidelis Investors. “We’re proud to bring another high-quality securitization to the market that serves both investors and communities.”

Completing a second deal so soon after its first highlights Fidelis’s long-term goal of becoming a consistent issuer, giving investors regular access to its growing asset class.

“Whether held on the balance sheet or brought to market, we’ve been committed to the RTL space since 2013,” Tortorella said. “Rated securitizations are a natural evolution for us, opening new investor channels while supporting liquidity and competitive financing terms for housing rehabilitation loans.”

Wednesday’s announcement follows Tuesday’s news that Rithm Capital, the parent company of multichannel mortgage lender Newrez, has struck a deal with an institutional investor to potentially acquire up to $1.5 billion in RTLs.

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