JAM Equity Partners announced the successful initial closing of its second private equity fund, JAM Special Opportunities II. The fund closed with $29 million in capital commitments from several lead investors and is targeting a total of $75 – $100 million with a second and final close in February 2009.
According to The Reverse Mortgage Report (RMR), the fund will target investments in financial services assets including reverse mortgages, distressed debt, servicing companies, and life settlements.
"We’re very bullish on the reverse mortgage sector," said partner Mike Sekits, because it is a government-guaranteed asset that is still misunderstood. "We think picking the right originator, putting capital behind the right company doing the right amount of loans, will be a great opportunity."
JAM is looking to invest $7.5-10 million per deal for established lenders closing approximately 100 loans per month said Sekits. He added that JAM does not require control of the companies it invests in, preferring for the owner to continue managing the business.