HSCM Bermuda in $150m financing deal with real estate tech firm
HSCM Bermuda has provided a $150 million debt financing arrangement to US real estate tech firm States Title.
California-based States Title offers artificial intelligence-based solutions for the real estate industry.
HSCM Bermuda is the reinsurance and ILS investment management business arm of Hudson Structured Capital Management Ltd, which launched in 2016 and now has more than $3 billion in assets under management.
HSCM focuses on alternative investments “targeting mezzanine level returns”, principally in the re/insurance and transportation sectors.
The firm is led by cofounders, Michael Millette, a former parter of Goldman Sachs, and David Andrews, previously an executive vice-president at asset management giant Pimco, where he managed a multibillion-dollar transportation portfolio.
States Tile, which was founded in 2016 by Max Simkoff, says on its website: “Using machine intelligence and our patented technology solutions, we’re creating a vastly more simple, efficient, and affordable closing experience for lenders, real estate professionals, and homebuyers.”
The company works with some of the largest mortgage lenders in the US. In 2019, it acquired North American Title Company and North American Title Insurance Company.
Hudson Structured, through its HSCM Bermuda reinsurance investing branch, had previously participated in a Series C funding round of $123 million for States Title.
Vikas Singhal, partner at HSCM Bermuda, said: “We are thrilled to be growing our relationship with States Title as they become an increasingly integral part of the mortgage ecosystem.
“We first met them in 2016 when they were still a start-up in an old San Francisco warehouse. It is so exciting to see them grow into such a structurally important part of the real estate industry and we are excited to back them again on this next phase of growth.”
Mr Simkoff, chief executive officer of States Title, said: “Today’s consumers expect processes to be simple, efficient and digital — and home buying, which is already stressful and overwhelming, should set the standard for easing customers’ journeys rather than lagging behind other digital solutions.
“At States Title, we’re not just fixing that system, we’re wiping it clean and building a better one from scratch. HSCM Bermuda has been a great partner, having participated in our last equity round prior to this debt financing. They see immense value in how we are overhauling the system and, together, we now have greater capacity to tackle this enormous market, with significant tailwind behind what we’re doing.”