A $25 million equity investment funds the vehicle, according to Cambridge Wilkinson, which noted that the unnamed client behind it has required licensing and government-sponsored enterprise approval. The client is positioning the vehicle for direct investments in mortgage servicing rights and as an inherent interest-rate hedge.

The funds Cambridge Wilkinson just closed on will be used to make two types of investments: "bulk" pools of older mortgage servicing rights purchased as a group in a single deal, and what are known as "flow" MSRs, which come from newly produced loans as they get originated.

The investment suggests there may be continuity in a MSR co-investment trend seen in recent years at private and public companies as interest rates shift. Servicing in general typically fairs better in a rising rate environment but it still can have value and roles to play when rates fall too.

MSR investment vehicles have been established in varying rate environments. Onity started one with Oaktree back when it was known as Ocwen in 2021. The private Rice Park Capital Management's MSR fund attracted some sizable commitments in 2022.

There's currently demand for "niche, yet scalable, real estate-related opportunities with institutional caliber management teams who have meaningful track records," Rob Bolandian, co-founder and global head of investment banking at Cambridge Wilkinson, said in a press release.

"Our investor network is currently guiding us to deliver $25 million to $300 million opportunities, but with that said, we are also currently negotiating a term sheet for $5 billion for a real estate-related client," he added.