Smith Graham Expands Into Alternative Credit With Five Mile Capital Lift Out

Mar 22 2017 | 8:56pm ET

Asset manager Smith, Graham & Co. has lifted out the residential mortgage team from Five Mile Capital Partners as the company expands into alternative fixed income investment management. 

The Stanford-based team, led by managing director Brian Tortorella, has invested more than $850 million in performing and re-performing mortgage loans, as well as short–term bridge loans, the company said in a statement. 

“The appeal of this offering, rebranded as ‘Mortgage and Real Estate Debt Alternatives’, is rooted back to our inception in 1990 when we found that mortgages provided above market yields with little additional risk over corporate debt,” said Gerald Smith, Chairman and CEO of Smith, Graham & Co. “The acquisition complements our portfolio of repeatable investment solutions, has low correlation to our existing fixed income products, [and] allows us to offer high yielding, low beta investment opportunities.” 

With the lift-out, Smith Graham & Co. now provides a full complement of customized fixed income solutions across the yield curve including alternatives, the company said. 

“In light of the tremendous growth opportunities in the alternative space available today,” added Donna Sims Wilson, president, in the statement. “We are proud to add a fixed income alternative that focuses on assets that require operational expertise, have limited competition and accretive optionality.”

Founded in 1990 and headquartered in Houston, Texas, Smith, Graham & Co. is a $6 billion institutional fixed income and equity investment management firm managing assets on behalf of public funds, corporations, endowments, and Taft-Hartley plans.


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