RTL securitizations bundle short-term loans used to finance the purchase and renovation of homes, often by fix-and-flip or bridge investors. For housing professionals, these transactions are an important source of liquidity that supports renovation activities and increases the inventory of ready-to-move-in homes, including those at more affordable prices.
“Securitization in choppy markets is a testament to Fidelis’ strong operating platform,” said Brian Tortorella, managing partner at Fidelis, in a statement. “While recent geopolitical challenges have shaken markets, investors continue to see reliable long-term value in capital markets solutions that quickly and efficiently create affordable housing across the country.”
The deal comes against a backdrop of increased macro uncertainty, including recently announced tariffs and military conflicts in the Middle East, which have increased volatility in fixed income markets. Despite this, Fidelis says demand from alternative asset investors remains solid for products backed by real estate collateral.
“The launch of our third RTL securitization demonstrates not only the confidence investors have in this asset class, backed by real, tangible assets, but also how RTLs have quickly become a more institutionally embraced asset class,” said Michael Tessitore, managing partner at Fidelis.
“Investors realize the severity of our country’s affordable housing shortage and see the opportunity to support housing rehabilitation financing as a way to address a national challenge while delivering reliable returns.”
Jefferies acted as sole lead manager and bookrunner on FIDL 2026-RTL1.
“Jefferies is pleased to help Fidelis Investors achieve strong securitization execution with a well-diversified order book,” said Jordan Rothstein, head of ABS trading and distribution at Jefferies.
Chris Schmidt, managing director at Jefferies, added that the transaction was completed “amid increased volatility and risk aversion in the current environment.”
The Fidelis transaction underlines that investor interest in RTL paper remains intact, even as spreads are under pressure from geopolitical and economic risks. For private lenders, mortgage REITs and funds active in bridge and fix-and-flip lending, continued access to the securitization market can support larger lines of credit, more consistent financing and potentially better pricing.
For real estate investors and renovation companies, stable RTL capital markets can translate into more reliable financing for acquisition and renovation projects, especially in markets where the older housing stock requires significant updates. In turn, this pipeline of rehabilitation financing is a lever to increase the supply of renovated, entry-level and workforce housing without being exclusively dependent on new construction.
Founded in 2020 and headquartered in Cranford, New Jersey, Fidelis reports more than $1 billion in assets under management and approximately $4.5 billion invested through 16 mortgage and real estate debt funds.
