A California-based firm hopes that a new management team and a $4 million investment in the company will help propel it to a dominant position in the reverse mortgage sector.
Private investment firm JAM Equity Partners LLC has committed to a $4 million investment in American Advisors Group, an announcement today said. JAM, which reportedly specializes in financial services companies, will fund the investment through its JAM Special Opportunities Fund II LP.
The capital will be used to fund infrastructure, sales and general working capital needs. It will also be used to finance a television and direct mail marketing campaign that will feature a “familiar” entertainer as its spokesman. With the added resources, the company hopes to accelerate reverse lending growth.
American Advisors also said its new management team is made up of industry veterans. The firm’s president, Reza Jahangiri, called the new management “one of the most seasoned and accomplished teams in the industry.”
American Advisors, based in Irvine, Calif., said it expects the moves will “immediately catapult the firm into the forefront of the specialty finance sector.”
The company closed 351 home-equity conversion mortgages this year, ranking it as the 20th biggest reverse mortgage originator, according to data reported by Reverse Market Insight. In contrast, No. 1 Wells Fargo Bank, N.A., has closed 12,264 HECMs through July 31.
JAM partner Mike Sekits noted in the news release, “American Advisors Group represents an exciting opportunity to invest in one of the nation’s largest independent reverse mortgage originators.”
