On March 19, 2024, Redwood Trust, Inc. (NYSE: RWT) and Canada Pension Plan Investment Board (CPP Investments) established a US$750 million (approximately C$1.01 billion) strategic capital partnership. This included a US$500 million (around C$675 million) Asset Joint Venture and a US$250 million (about C$337.5 million) secured financing facility. The Joint Venture focused on Redwood’s residential investor bridge and term loans, targeting over US$4 billion in total acquisitions. CPP Investments and Redwood committed up to US$500 million (C$675 million) in equity, with CPP Investments providing 80% and Redwood 20%. Redwood managed the Joint Venture's assets and earned fees for its services. The US$250 million (C$337.5 million) secured corporate financing facility, with a two-year term and a one-year extension option, supported Redwood's mortgage banking platforms. CPP Investments also received warrants to acquire Redwood stock, initially valued at US$15 million (C$20.25 million), with the potential for an additional US$36 million (C$48.6 million) upon meeting deployment targets.

Mayer Brown represented Redwood Trust in the transaction