The Real Deal New York

Ex Goldman mortgage chief markets fund to buy up, rent out foreclosed properties

July 20, 2012 11:00AM

The former head of credit and mortgage for Goldman Sachs is raising $500 million for a new fund that will buy foreclosed homes and attempt to rent them out. Donald Mullen, who left Goldman in January, has been marketing his Fundamental REO Access fund for about a month, sources told Reuters. Goldman is acting as placement agent for the fund, which Mullen has told potential investors could raise as much as $1 billion.

The fund is part of a larger trend in the last year wherein financial firms have sought to profit from foreclosed homes. Alternative asset manager the Blackstone Group has spent more than $250 million so far this year buying foreclosed single-family houses with the intention of renting them out, published reports say. [Reuters]Guelda Voien

  • arusky

    Maybe its just me.. Or does anyone else see the irony in this? Ex Goldman chief (who I’m sure was part of the problem in the meltdown in 2008 is now creating a fund to profit from the very mess he helped create? There is something very obscene about this.