The investment comes from the JAM Special Opportunities Fund II, LP and will be used to increase the company’s warehouse capacity and to further accelerate its growth in the reverse mortgage sector, including funding the company’s infrastructure, sales and marketing, and general working capital needs.
“We are impressed by the company’s management team and capital markets expertise,” said Mike Sekits, partner at JAM. “Additionally, its recently completed merger with OMNI Reverse makes it one of the largest reverse mortgage platforms nationally.”
S1L acquired OMNI reverse earlier this year as well as consumer direct marketing firm Comfortable Retirement. Combined, the company became the 8th largest reverse mortgage lender in the country according to data from RM Insight.
“We are excited to partner with a capital source such as JAM which has substantial experience in the reverse mortgage sector,” said Torrey Larsen, President of S1L. “JAM’s investment in the company and its industry resources will enable S1L to become a dominant participant in the reverse mortgage sector.”
The investment in S1L marks JAM’s second reverse mortgage investment of the year. Earlier it invested $4 million in American Advisors Group.