UWM Holdings Corporation has announced a $2.05 billion strategic capital partnership with the Ishbia family's SFS Group Capital and Oaktree Capital Management to strengthen its balance sheet and support long-term growth. The investment, structured as preferred equity with warrants, includes $1.65 billion funded at closing and a planned $400 million rights offering to Class A shareholders, with the Ishbia family and Oaktree providing backstop support if needed. UWM will suspend its common dividend to prioritize debt reduction and plans to use proceeds to repay existing debt and mortgage servicing rights financing facilities. The company, which has been the nation's largest mortgage originator since 2022 and the wholesale channel leader for 11 consecutive years, said the partnership will enhance liquidity and allow continued investment in technology, AI, and the independent broker channel. A representative from Oaktree will join UWM's board, and the firm will have the right to nominate one additional independent director.
UWM Holdings CorpAnnounces $2.05B capital partnership with preferred equity and warrants to strengthen balance sheet and support growth.
Oaktree is a key investor providing $2.05B capital partnership, gaining board representation.
