Fidelis Closes $191.5M Residential Transition Loan Securitization

Alternative asset manager Fidelis Investors announced on Thursday the closing of its fourth rated residential transition loan (RTL) securitization, FIDL 2026-RTL2. This two-year revolving securitization totals $191.5 million and is backed by 381 residential transition loans originated by 24 different lenders. The closing occurs as demand for private lending solutions designed to increase housing supply continues to grow.

Unitas Funding LLC, a wholly owned subsidiary of Fidelis, led the transaction. The securitization achieved several notable milestones for the residential transition loan market, receiving ratings from Morningstar DBRS and KBRA. Fidelis stated this is the first time a manager has launched a second rated RTL securitization in 2026 and the first to close a transaction featuring KBRA-rated bonds. Residential transition loans are primarily utilized by real estate investors to finance property acquisitions and rehabilitation, including fix-and-flip projects, often supporting housing rehabilitation efforts that traditional lenders may not finance.

Brian Tortorella, managing partner at Fidelis, highlighted the company's role in establishing the secondary market for residential transition lending and its current achievement of bringing KBRA-rated bonds to market. He emphasized Fidelis's contribution to the institutionalization of private real estate lending, particularly in the context of the nation's housing affordability challenges, noting investor eagerness to support solutions that increase housing inventory and offer strong returns.

Michael Tessitore, managing partner at Fidelis, added that the successful closing of their second rated RTL securitization this year demonstrates sustained investor commitment to private mortgage lending as an asset class, despite broader concerns about the private credit sector. Investors are increasingly viewing private real estate lending as a means to support housing rehabilitation while simultaneously generating returns.