Greenwich, CT Lancewood Capital, a Conn.-based family office focused on real estate credit opportunities, provided a $40 million senior credit facility to a Los Angeles, California-based commercial real estate lender.

“The Lancewood team is excited about this relationship as it allows the firm to deploy capital in California and other West Coast markets through a local first lien lender who has been investing in this region for a long time,” said Justin Godner of Lancewood Capital.

Lancewood Capital, a family office investment firm, has emerged as a sizeable provider of senior note financing to alternative real estate lenders providing first lien loans in the $3-50 million space. The firm provides revolving credit facilities and one-off note-on-note financing to alternative real estate lenders, a business historically conducted by banks.

“The current credit environment has created more demand among alternative real estate lenders to work with Lancewood to finance their first lien loan originations and/or non-performing note acquisitions,” said Godner, who structured this credit facility and is the co-head of real estate credit at Lancewood. He said that the lender finance platform was created to provide alternative real estate lenders with reliable, flexible, and competitively priced senior leverage without the constraints typically associated with conventional bank leverage.

Lancewood Capital continues to establish lender finance relationships with alternative commercial real estate lenders in New York, California, and Florida. In the past six months, Lancewood closed a $60 million credit facility for a NY-based lender, a $40 million credit facility for a CA-based real estate lender, and more than $80 million of one-off lender finance investments for performing and non-performing first lien loans.