Pretium Invests Big in U.S. Homebuilding with Over $1 Billion in New Loans

Pretium, a real-estate investment firm led by Don Mullen, has issued over $1 billion in loans to U.S. homebuilders within six months, aiming to become a key player in residential finance amid a housing shortage and banks retreating from real estate lending.

Pretium, a prominent real-estate investment firm launched by former Goldman Sachs executive Don Mullen, has made a significant impact by originating more than $1 billion in loans to U.S. homebuilders over the past six months.

The firm, which oversees $60 billion in assets, initiated these loans in January to strengthen its presence in the residential real estate sector as traditional banks withdraw from such lending due to regulatory and risk issues. The housing shortage in the U.S., estimated at 3.7 million homes by Freddie Mac as of last year, exacerbates this niche for private capital players like Pretium.

The firm reports that its loans will facilitate the construction of nearly 5,000 new homes, positioning Pretium as a leading lender in the homebuilding industry by 2027, alongside former Morgan Stanley COO Jon Pruzan and former Goldman CFO Stephen Scherr, now co-presidents at Pretium.