Overview

M2 Capital Partners is raising $100 million to scale a U.S. residential mortgage platform focused on short-duration, high-yield residential transition and DSCR loans.

• Target 9%+ gross unleveraged yields through the origination and acquisition of first-lien small-balance residential loans across the top 100 MSAs

• M2’s team has over ~$10B+ in prior experience, enabling institutional-grade underwriting, compliance, and servicing for an underserved segment

• Emphasis on capital preservation, fast execution and liquidity, with diversified loan pools, short-term maturities, and disciplined credit underwriting

• Firm leverages deep originator relationships, proprietary technology, and real-time analytics to scale efficiently and monitor collateral across the portfolio

Opportunity

• The U.S. housing market faces a 3-5 million unit supply deficit, leading to sustained demand for renovation, build-to-rent, and investor-owned housing stock

• Banks have retrenched from residential investor and small-balance lending due to regulatory constraints and capital requirements, creating a widening private credit gap

• The private residential lending market exceeds $100 billion annually, yet remains fragmented, under-digitized, and dominated by sub-scale lenders

• Aging housing stock creates a dual opportunity – expanding affordable homeownership and reinvigorating neighborhoods through the rehabilitation of existing homes

• Institutional allocators are shifting capital toward short-duration, asset-backed private credit to capture yield, hedge inflation, and reduce duration exposure

Traction/Milestones

• First warehouse line operational for nearly a year with Northpointe Bank; second facility in progress with Bank of California

• Loans funded and sold to date have generated consistent profitability

• Underwriting guidelines, operational processes, and procedures for a turnkey, scalable platform established and active

• Fully onboarded third-party partners including legal, due diligence, title, servicers, risk-management technology providers, and loan processing back office

Solution/Strategy

• Acquire short-duration, high-yield residential transition and DSCR loans secured by U.S. residential real estate

• Apply underwriting, servicing, and compliance standards built over ~$10B of prior and non-agency experience

• Partner with select originators and use proprietary technology to enhance credit decisions, monitor collateral, and accelerate execution

• Focus on 12–24 month maturities to drive rapid capital recycling and improve downside protection

• Maintain conservative LTVs, diversified pools, and disciplined leverage to achieve 9%+ gross unlevered yields with consistent cash flow

Management

Karey Geddes

Partner

• Leads the residential business; 25+ years in residential lending
• Formerly built multiple businesses with >$1B originated in under a year
• Experience completing tens of billions in securitizations
• Previous VP roles at CSFB and DLJ
• BA in Finance & Economics, Pace University

Claire Packer

Partner

• Partner at Monolith Capital Advisors US; leads private credit strategy and operations
• Former COO & Head of Capital Formation at Warwick Investment Group ($2B+ AUM)
• Founder of H10 Advisors, advising on fund launches and institutional operations
• AB from Harvard; Master of Accountancy from William & Mary

Bobby Pokora

Partner

• Leads private credit strategy, asset management and managing operations
• Licensed Florida General Contractor; executed >100,000 sq ft of construction and 30+ value-add investments
• Former Pomona Capital investor (>$1B completed)
• Started at Goldman Sachs covering gaming/lodging/hospitality
• AB in Business (Finance), Franklin & Marshall

John Hohos

Partner

• Leads the residential business; 25+ years in residential lending
• Formerly built multiple businesses with >$1B originated in under a year
• Experience completing tens of billions in securitizations
• Previous VP roles at CSFB and DLJ
• BA in Finance & Economics, Pace University

Specific Risks

• Strategy depends on consistent warehouse capacity and loan recycling; market disruptions could slow capital deployment or loan sales

• Borrower defaults, construction delays, valuation errors, or servicing issues may lead to reduced recoveries or lower profitability

• Market spread widening could compress net yields and impact platform economics

• Extreme dislocations or unexpected macro shocks could materially affect portfolio performance

• Borrower misrepresentation or fraud can negatively impact loan performance and increase loss severity

• Private securities are speculative, illiquid, and carry a high degree of risk – including the loss of the entire investment