IRVINE, Calif.–(BUSINESS WIRE)–April 24, 2014–
Cove Financial Group Inc. (“Cove”) announced today a $250 million financing commitment led by a multi-billion dollar, New York-based real estate investment firm. This commitment will support the accumulation of Cove’s growing portfolio of single-family homes purchased through its Mortgage Alternative Program (“MAP”).
Concurrent with the closing, Cove announced the funding of an additional $1.5 million Convertible Debt investment by an affiliate of Jacobs Asset Management, LLC (“JAM”). Together with its initial investment, this transaction brings JAM’s total investment in Cove to $11 million.
Proceeds from both transactions will be used to grow Cove’s Mortgage Alternative Program and continue to develop its unique digital marketing and underwriting platform. “These investments mark an important milestone in the growth of the company. The depth of knowledge and experience of our new partner in the real estate markets and its significant financing commitment provide Cove the opportunity to help thousands more families realize the American dream of becoming a homeowner,” said Patrick Flanagan, CEO of Cove. “We are also gratified by the continued support from JAM.”
With its Mortgage Alternative Program, Cove serves the community of people who want to buy a home and have a down-payment, but do not currently qualify for a mortgage. MAP is an innovative program that allows a customer to move into a home today and have up to 6 years to complete the purchase of the home.
Additionally, Cove’s MAP is supported by an industry-leading digital marketing, algorithmic lead scoring and underwriting platform. Combining multi-channel advertising delivery with robust audience analysis and extended customer relations management capabilities, Cove’s platform is powering a growing network of partners offering a variety of products and services to serve this consumer in real-time.
“We are excited to see Cove announce this transaction, given their new partner’s expertise in the real estate markets,” said Mike Sekits, Director of Private Equity at JAM. “It is a testament to the management team’s experience and product ingenuity that they have been able to attract such a substantial commitment.”
About Cove Financial Group Inc.
Established in 2012 and based in Irvine, California, Cove has deep expertise in the financial, real estate and technology industries. Through its Mortgage Alternative Program, Cove helps consumers unable to qualify for a mortgage by putting them on a path to home ownership. Cove currently operates in fifteen states and continues to expand its operations.
About Jacobs Asset Management, LLC
Founded in 1995, JAM is a registered investment adviser focused exclusively on investing in the financial services sector. As of December 31, 2013, JAM managed over $750 million on behalf of a variety of clients including a series of private equity funds that seek to make long-term, high-return investments into financial services businesses and a long/short equity hedge fund.