Civic Financial Services, LLC announced that Pacific Western Bank has purchased the company from Wedgewood, LLC. Based in Redondo Beach, Calif., CIVIC is one of the leading institutional private lenders in the U.S. specializing in originating residential business-purpose loans (BPLs). Terms of the agreement were not disclosed.
CIVIC was founded in 2014 through a partnership between Wedgewood and one of its subsidiaries, HMC Assets, to serve investors who did not fit within traditional real estate lending criteria. The company will operate as a wholly owned subsidiary of PacWest Bancorp, while William J. Tessar will continue to serve as CIVIC’s President.
Since its inception, CIVIC has funded more than 10,000 loans to real estate investors for more than $4.4 billion. In 2020, the company funded more than $1 billion amidst a pandemic that caused other private lenders to pause operations or exit the market. The company has also received several awards for being one of the best places to work in the financial industry.
The acquisition advances Pacific Western Bank’s strategy to expand its lending portfolio and diversify its revenue streams. “We believe there is growth and earning potential in the residential BPL space,” said Pacific Western Bank President and CEO Matt Wagner. “This acquisition opens the door for us to grow in the private lending space with a proven market leader, creating value for both of our organizations. We are excited to welcome the talented CIVIC team to Pacific Western Bank.”
“As a part of PacWest Bancorp, CIVIC is poised to dominate our market more fiercely than ever before,” Tessar said. “More importantly, PacWest Bancorp shares the values our company has been built upon as well as our vision and goals. With a strong capital base, we have the ability to continue to invest in scaling our infrastructure and operations and expand into new markets. CIVIC customers will continue to experience our outstanding service with an even broader array of competitive financing solutions to help them grow their businesses.”
Evercore acted as the exclusive financial advisor to Wedgewood in connection with the sale of CIVIC to Pacific Western Bank.