Lument IM’s Business
Lument Investment Management, LLC (“Lument IM”), founded in 2019, is wholly-owned by
Lument Real Estate Capital Holdings, LLC (“Lument”), a wholly-owned, through intermediate
wholly-owned subsidiaries
1, by ORIX Corporation USA (“ORIX USA”), which itself is a wholly-
owned subsidiary of ORIX Corporation (NYSE: IX, TSE: 8591) (“ORIX Corporation”), a public
company. Lument IM provides portfolio management and advisory services to a public company
that is traded on a national securities exchange (“Public Company Client”), separately managed
accounts (“Managed Accounts”) and intends to do so in the future for US and non-US pooled
investment vehicles (the “Funds”)(each a “Client” and collectively “Clients”).
Advisory Services
Lument IM, on behalf of its Client, primarily invests in real estate debt or subordinated assets and
both public and private real estate-related instruments, including commercial real estate mortgages
and other debt obligations or capital products that fund real estate investments, securitized real estate
investments, and other forms of real estate securities. Client’s investments generally take the form
of, or include, without limitation: (i) the acquisition of securities in entities that own or invest in one
or more real estate debt- related, subordinated financing, or equity assets; (ii) the sponsorship of or
investment in real estate investment trusts (“REITs”), pooled investment funds, or other real
estate related companies (including management, financing, development, or other operating
companies); (iii) the issuance or acquisition of subordinated financing assets, mortgage loans, and
other real estate backed indebtedness, or participation in, or ownership of, securities backed by such
indebtedness; and (iv) investment in real estate related securities, some of which are relatively illiquid
and credit sensitive, including rated and unrated interests in mortgage-backed securities or other
structured products collateralized by healthcare, multifamily, and commercial real estate loans,
interests in individual loans secured by healthcare, multifamily, and commercial real estate, including
subordinated interests, mezzanine loans, and other real estate-related securities, securities resulting
from commercial real estate securitizations, and any other real estate debt-related instruments. The
terms upon which Lument IM provides its investment management services to a Client are set out in
the relevant offering documents, disclosure documents, indentures, limited partnership or limited
liability company agreements, investment company agreements, investment management
agreements, asset management agreements, collateral management agreements, subscription
agreements, loan participation agreements, side letters, or similar documents, as applicable (each a
“Governing Document,” and, collectively, the “Governing Documents”).
1 The subsidiaries are as follows:
Lument, which is a majority shareholder of Lument IM; OREC Holdings, LLC (“OREC
Holdings”), which is the sole owner of Lument; OCU Commercial Mortgage Servicing, LLC (“OCMS”), which is the
sole owner of OREC Holdings; OCU Equity Holdings, LLC (“OCU EH”), which is the sole owner of OCMS; OCU Opco
Holdings, LLC (“Opco”), which is the sole owner of OCU EH; ORIX Capital Markets, LLC (“ORIX CM”) which is the
sole owner of Opco, and ORIX Corporation USA, which is the sole owner of ORIX CM.
Lument IM provides investment advisory services to a Public Company Client subject to the
oversight of its boards of directors, pursuant to a management agreement, and in accordance with the
investment objectives, strategies, and guidelines approved by the board of directors. Investment
advice to each Managed Account is tailored to the Managed Account’s individual needs pursuant to
the investment objectives, strategies, and restrictions, including if applicable, customized investment
guidelines, as individually negotiated with such Managed Account and set forth in each Managed
Account’s Governing Documents. Investment advice provided to any Fund will be provided directly
to each Fund and not individually to the investors in such Fund. Accordingly, such services will be
tailored to each Fund’s investment objectives, strategies, and guidelines, which will be described in
the applicable Governing Documents. Investors in a Fund are generally not provided with the right
to specify, restrict, or influence such Fund’s investment objectives.
The advisory and management services that Lument IM provides to its Clients generally include: (i)
general management and administrative services and portfolio management services, including
managing day-to-day operations; (ii) the evaluation and selection of investments; (iii) the acquisition,
management, and disposition of assets spanning the equity and real estate debt product spectrum,
including, but not limited to, whole loans, participation interests, real estate structured products,
subordinated assets, leveraged and unleveraged bonds, other forms of real estate securities, and real
estate-related corporate loans; (iv) the valuation of assets; (v) ongoing asset management and related
reporting; (vi) the development of proactive strategies to resolve operational, financial, and other
performance issues; (vii) the provision of executive and administrative personnel; (viii) the
communication, on behalf of any applicable Client, with the holders of any such Client’s equity or
debt securities; (ix) advising Clients as to such Client’s capital structure and capital raising efforts; and
(x) the generation of income and capital appreciation through asset selection, credit re- underwriting,
capital structure relative value, and rate and credit hedging of investments spanning the real estate
debt structure.
Lument IM does not participate in any wrap fee programs.
As of March 31, 2023, Lument IM had $2,669,880,120 of regulatory assets under management.