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aktree Capital Management has launched Formida Capital, a debt platform focused on direct loans for commercial real estate and financing solutions for regional banks. Backed by $250 million in equity from Oaktree, Formida aims to close $1 billion in originations over the next year.

    The firm's managing partner, Jeffrey Giudice, notes that regional banks have pulled back from lending due to liquidity issues, making it difficult for middle-market sponsors to access capital. To address this, Formida will offer direct lending on stretch senior loans, preferred equity loans, and mezzanine lending, as well as provide loan-on-loan financing to local and regional banks.

    Formida's president, Wade Hundley, is already in contact with regional banks to help them provide liquidity for customers whose CRE loans have come due. The firm plans to offer gap equity, risk transfers, and full stretch senior loans to alleviate pressure on banks.

    Oaktree's global head of real estate, John Brady, sees significant opportunities for Formida across various asset classes and high-growth markets. Brady notes that the need to recapitalize assets is immense due to the drastic repricing of interest rates, creating an opportunity for Formida to bridge gaps with debt and equity solutions.

    Formida will focus on hospitality and other sectors, but not construction loans initially. The firm's partnership with Oaktree allows it to take a more equity-focused approach to debt situations by playing higher in the capital stack. Giudice cites an example of a sponsor buying an asset for $100 million that might be worth only $80 million today, where Formida could provide a $70 million loan if the sponsor came to the table with $5 million in equity.

    Formida's goal is to provide capital at higher leverage execution, which seems to be in high demand.