Wes Carpenter, Managing Partner at Stormfield Capital, joins Kevin Kim in this episode of Lender Lounge. With a background in multifamily investing and over a decade in private lending, Wes shares the unique story of building Stormfield into a contrarian, institutional-grade lender. Unlike many of its peers, Stormfield operates as a true balance sheet lender with no structural leverage or loan sales, holding over $750 million in AUM. Wes discusses the evolution from syndicating hard money deals to launching a fully audited, institutional fund, highlighting their focus on durability, disciplined underwriting, and investor-first principles. The conversation covers market shifts, the rise of securitization, and the long-term outlook for residential and commercial lending.
Bullet Points:
[00:00:00] Introduction
[00:01:07] Wes Carpenter introduces Stormfield Capital and their lending strategy.
[00:02:32] The firm's origin story and how it differs from other lenders.
[00:04:24] From syndicating loans to launching their first fund in 2016.
[00:07:06] Why Stormfield committed to being a balance sheet lender.
[00:10:06] Avoiding correspondent lending in favor of business independence.
[00:12:20] Wes's early background in multifamily and discovering bridge lending.
[00:14:23] Strategic CRE lending only when risk is asymmetrical.
[00:15:24] Borrower evolution from fix-and-flip to long-term investing.
[00:17:18] Transitioning Stormfield into an institutional asset manager.
[00:19:52] Staying unlevered and resisting the temptation of selling loans.
[00:22:05] Building the fund with full audit and third-party admin from day one.
[00:24:30] Avoiding structural leverage to ensure durability in down markets.
[00:26:03] Stormfield's growth during periods of market dislocation.
[00:28:14] Reaction to widespread leverage and securitization in the market.
[00:31:03] Questioning if bond investors are being adequately compensated.
[00:33:05] Disconnect between pension/endowment capital and direct originators.
[00:34:04] Why RTL's short-term nature challenges traditional securitization.
[00:36:57] SMAs may be a more viable path for institutional entry.
[00:38:17] Recognition of self-originated securitizations gaining better pricing.
[00:40:03] Stormfield's continued commitment to residential lending.
[00:42:14] Reducing Florida exposure due to insurance and demographic shifts.
[00:44:36] Stormfield's contrarian approach and resisting mainstream trends.
[00:46:19] Declining DSCR offerings to stay focused on core strategy.
[00:48:42] Gaining traction with endowments through early planning and access.
[00:50:08] The hidden challenges and risks of institutional capital.
[00:53:33] HNW investors provide stability compared to large institutions.
[00:57:20] Wes's market outlook: multifamily trough and market reset.
[01:00:59] The lack of permanent agency financing as a long-term concern.
[01:01:06] Regional variations and pricing corrections in residential real estate.
[01:02:09] Competitive pressure from aggressive lenders versus discipline.
[01:02:09] Kiavi's real advantage is borrower experience, not just price.
[01:04:34] Tech investment and borrower UX need more industry focus.
Links:
Learn more about Stormfield Capital at https://www.stormfieldcapital.com/
Learn more about Geraci Law Firm at https://www.geracilawfirm.com
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