(Updates with Perella comment in fourth paragraph.)
July 8 (Bloomberg) -- Prudential Financial Inc., the second-largest U.S. life insurer, said it formed a venture with the investment unit of Perella Weinberg Partners LP to originate commercial mortgages for securitization.
The venture has a target of more than $1 billion a year in loans, according to a statement today from the mortgage unit at Newark, New Jersey-based Prudential.
All loans made through the venture will be originated and serviced by Prudential. The insurer exited commercial mortgage securitization in 2008 after the unit posted a pretax loss of $107 million in the first quarter.
“We think for both the borrowers and for ultimately the CMBS securitized bonds, that this is a tremendous positive for the market,” said David Schiff, a partner at Perella Weinberg and portfolio manager for the asset unit. “Two quality players are coming back to the market. That’s a sign that things are healing.”
--Editor: Dan Kraut
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