“The combination of a strong capital base from an industry experienced partner and one of the most seasoned and accomplished teams in the industry, positions us to be a substantial player in the reverse mortgage space in the coming year,” said Reza Jahangiri, President, American Advisors Group.
JAM Equity Partners is a private investment firm based in El Segundo, Calif., and has committed $4 million from its JAM Special Opportunities Fund II, LP (“JSOF II”). Proceeds from the financing will be used to further accelerate AAG’s growth in the reverse mortgage sector, including funding the company’s infrastructure, sales and marketing, and general working capital needs said a company statement.
“We are impressed by the company’s deep and proven management team and its diversified multi-channel customer acquisition strategy,” said Mike Sekits, partner at JAM. “AAG represents an exciting opportunity to invest in one of the nation’s largest independent reverse mortgage originators.”
JAM isn’t new to the reverse mortgage business, the company made investments in Vertical Lend / Senior Lending Network before it was purchased by KBC Group as well as Reverse Mortgage Solutions. Sekits told RMD that the company is actively seeking other investments in the industry and expects to make another announcement in the reverse mortgage sector within the next 60 days.
The Irvine, CA based reverse mortgage lender plans to roll out a new direct mail effort, along with a national television campaign “that will not only promote the company as a leader in reverse mortgage lending, but also provide unparalleled transparency and education to the senior community,” said Teague McGrath, Vice-president, Marketing.
The campaign’s theme, “The Best Advice for a Better Life,” will include a widely familiar spokesperson from the entertainment world that will be identified by the firm later this summer.
AAG’s new management team includes several professionals who previously held positions at the Senior Lending Network and Liberty Reverse Mortgage/Genworth.
The company has endorsed 351 HECMs YTD according to data from RM Insight.Print Article