New strategic alliance aims to capitalize on firms’ expertise and synergies across mid-market construction sector
Affinius Capital LLC (“Affinius”) and Axonic Capital LLC (“Axonic”) today announced a strategic partnership, which will expand on the firms’ existing collaboration and complementary strengths. By leveraging Axonic’s advisory and investment capabilities and Affinius’ extensive network and sourcing capabilities in the construction industry, they will deliver mid-market first mortgage financing for new development projects, funded through Axonic’s insurance platform.
“Axonic’s expertise in developing agile financing structures is a natural match with Affinius’ strong presence in construction lending,” said Axonic Capital Co-Chief Investment Officer Matt Weinstein. “We’re able to deliver creative, flexible financing solutions to an area of the middle market that is showing strong signs of opportunity, and we look forward to scaling this platform together.”
“We have been seeking the right partner to help fill what we perceive to be a gap in the market for construction loans in the middle market space,” said Affinius Capital Senior Managing Director/Head of Lending Michael Lavipour. “Combining our construction lending infrastructure and sourcing capabilities, which we have spent the last decade plus building, with Axonic’s flexible insurance capital, we create a powerful partnership that positions us to be extremely active in this space going forward.”
Appetite for mid-market construction opportunities and financing remains strong, particularly within the multifamily, industrial, and self-storage sectors. Earlier this week, Affinius and Axonic announced their inaugural deal in the partnership, a $47.8 million loan to finance the ground-up development of a 217,000-square-foot Class A industrial and self-storage property in Quogue, NY.
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