Global credit funds & CLO's
November 2020
| Issue 229
Published in London & New York.
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November 2020 | Issue 229
Wriedt’s boutique vehicle eyes rent-to-own strategy
Sayed Kadiri headshot
Sayed Kadiri
Long-time CLO specialist Oliver Wriedt is pursuing opportunities across a range of sectors as part of his new business, which seeks to make minority equity investments in boutique asset managers. His platform, HighKey Capital, plans to buy minority equity stakes in asset managers and to incubate new asset management platforms through a vehicle known as HighKey Catalyst.
“I am looking at ultra-affordable housing,” says Wriedt. “We’re facilitating home ownership for families that have been largely shut out of real estate markets since 2008. Now that mortgage rates are hovering around all-time lows, we are looking to execute a rent-to-own strategy in Florida. We are committed to doing well by doing good.”
Despite his experience as CEO at serial CLO issuers CIFC Asset Management and DFG Investment Advisers, Wriedt’s focus is now on niche strategies, partly because there are few barriers to entry in the CLO market. Instead, Wriedt says he is looking to unearth niche investment opportunities and identify managers capable of executing them.
Wriedt describes the home ownership opportunity as buying portfolios of rental properties and repositioning the assets as lot rentals. Cash flows are predictable and lend themselves to attractive re-financing.
“The biggest challenge is sourcing the right assets. It’s an operationally intense business as it involves converting tenants into homeowners,” says Wriedt. He has incubated a specialist real estate operator in the Orlando area for this work.
“There are plenty of capital providers to multi-billion asset managers. I’m targeting smaller operators that specialise in very specific opportunities,” he says.
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“We’re facilitating home ownership for families that have been largely shut out of the real estate markets”
Oliver Wriedt
, Founder | HighKey Capital
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