Bain buys majority stake in Irvine-based lender Archwest Capital

Bain buys majority stake in Archwest Capital for undisclosed terms
Bain Capital's John Connaughton and Jonathan Levine and Archwest Capital's Shawn Miller with 19800 MacArthur Boulevard (Bain Capital, Archwest Capital, Google Maps, Getty)

Bain Capital has bought a majority stake in Archwest Capital, which loans money to residential real estate investors, for undisclosed terms.

The Boston-based investor bought the Irvine-based lender led by Shawn Miller, whose management team will retain a “significant minority stake,” Housing Wire reported, citing an announcement from the firms. 

Archwest provides financing for home builders, renovators and owners of single-family and multifamily properties, as well as mixed-use and commercial projects.

Its product mix includes fix-and-flip loans, bridge loans and construction loans. It has reportedly made more than $700 million in loans since 2022.

“Today more than ever, real estate investors and developers need reliable lending partners who are agile and can provide certainty of execution to solve their complex financing needs,” Miller said in a statement. 

“Bain Capital shares our vision for building Archwest into the leader for U.S. business purpose lending and we look forward to leveraging their resources and operational capabilities,” he said.

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Irell & Manella acted as legal adviser to Archwest in the deal, while Piper Sandler Companies was the financial adviser and Dechert was the legal adviser to Bain Capital.

Bain Capital has more than 1,750 employees worldwide and manages $185 billion in assets. 

In March, its venture capital arm contributed to a $30 million funding round to mortgage verifications provider Argyle, based in New York. The firm is also a major investor in Boston-based Hometap, among the larger players in home equity investment, according to HousingWire.

Archwest’s founders have more than 20 years of experience partnering with leading housing developers and financial institutions across different real estate lending businesses.

The firm’s leadership claims more than 70 years of combined experience, managing more than $8 billion of assets and making $3 billion of business purpose loans tied to more than 5,000 properties, according to the press announcement. 

— Dana Bartholomew

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