Tides Equities?

Question

Just curious if anyone knows much about how these guys.  Guessing that they originally met through the Benedict Canyon/TruAmerica prior jobs (same office, same principal).

Given the volume they are doing (I have heard a few brokers that have sold them deals refer to them as "ultra aggressive"), I am just curious if they have some secret HNW investor backing them, or some other creative way of acquiring north of $2B in asset value the past 5 years.

brosephstalin · Accepted Answer

Ozy why you always gotta get in the weeds...missing the forest for the trees.

These guys were clearly savvy, knew what they were doing and hustled a ton of big players in the industry. You really think they were dumb enough to roll their fees into the deals cmon. All their debt is non-recourse for a reason. Obviously if bad boys come into play its a different story but I haven't seen any allegations of outright fraud and feel like they were smarter than that but we'll see.

Charybdis Alignak · Answer

I'll tell you that if he is an analyst at Tides it makes sense they don't know what recourse is or obligations to it. They think if something say non-recourse on the loan it means they are totally acquitted of any type of risk, but will gladly sign, carry guarantees, completion guarantees, rebalancing guarantees, replenishment guarantees, dual pledging of collateral (first lien on asset and UCC lien on equity), and then ask the lender "yes but not recourse so we good?".

UrbanGladiator · Answer

MF1 is smoked. They've done $14bn of originations from 2018 till now. Like 80% of that has been in 2021/22. 1.3bn in NYC boroughs, $900m in PHX, $860M in LA. I've seen what they originate and my god they got aggressive with lots of high leverage loans. They have $800m to Tides and $450m to Grant Cardone, $275m to veritas, $200m to ZMR. They just had Fifteen group bail them out on a horrid DTLA portfolio but that deal is still overpriced.

I've noticed a lot of these CLO loans are 3/1/1 or 2/1/1/1 structures, so I think a lot of people are just praying rates go back down soon.

Charybdis Alignak · Answer

I'll share with you a part of their Founder's Letter that they included in the package as well:

"Over the past years we have cultivated strong connections at both a business and personal level with all our lenders, engaging in repeat business with the best lending partners and intentionally amassing bulk portfolios with the ones that we are most confident in.

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Tides Equities?

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