Interview with Dimitri Papatheoharis; Managing principal at REVL Capital Group LLC

Courtesy: FINN Newsletter

With the risk-off sentiment waning as we head into cycle-end, one has to wonder what the future holds for less liquid, longer duration subsectors of the securitization market. To get a sense, FIIN spoke to managing principal Dimitri Papatheoharis of Philadelphia-based REVL Capital Group, which not only invests in asset classes like Property Assessed Clean Energy (PACE), small business administration (SBA) pools and credit tenant leases, but has even helped to kick-start newer asset classes via various aggregation strategies. The firm has led four securitizations of interest only (IO) strips backed by the government guaranteed portion of underlying SBA loans and is now working on what would be the largest C-PACE deal to date, as well as a single-asset rated C-PACE deal – a market that doesn’t even exist yet.

These are the kinds of assets securitization wants to be known for – contributing directly to the real economy and helping to meet sustainability objectives. PACE has created more than 40,000 jobs in the last five years, Dimitri says. C-PACE deals have generally low loan-to-value (LTV) ratios and provide commercial real estate developers a lower cost alternative to mezzanine debt and equity capital.

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