Houlihan Lokey Advises Primary Capital Mortgage

Houlihan Lokey is pleased to announce that Primary Capital Mortgage, LLC, (PCM), a subsidiary of Resource Capital Corp. (NYSE:RSO), has sold certain production and operating assets and operations to Stearns Lending, LLC, (Stearns). The transaction signed and closed on June 6, 2017.

The acquisition is highly complementary to Stearns' current footprint. As part of the transaction, Stearns offered positions to a majority of PCM's employees. PCM's talented team will help achieve Stearns' ongoing pursuit of profitable growth and commitment to being an industry leader. The transaction is consistent with Resource Capital Corp.'s plans to exit the residential mortgage origination and servicing business.

Founded in 1994, PCM is an innovative, non-bank residential mortgage lending company based in Atlanta, Georgia. PCM is a fully licensed mortgage loan originator in 41 states and Washington, D.C., and, in 2016, originated $1.9 billion in mortgage loans. The company originates production through wholesale and consumer-direct channels.

Founded in 1989, Stearns is a leading provider of mortgage lending services in wholesale, retail, strategic alliances, and consumer-direct sectors throughout the United States where licenses are held. The company originated $26 billion of mortgage loans in 2016 and was ranked as the No. 3 Wholesale Lender nationwide by Inside Mortgage Finance. Stearns is based in Santa Ana, California, and is majority-owned by private equity sponsor The Blackstone Group, L.P.