Private investment firm Rice Park Capital Management reports that its strategic equity investing team has closed RPC Ventures Fund II LP.
The committed capital allows Rice Park to make direct investments in early-stage and mid-stage mortgage technology companies to support them through the commercialization phase of growth.
“We believe that our active approach to investing in sectors that we know are gaining attention and the successful closing of our second venture capital fund is a testament to what we are building,” says Nicholas Smith, CEO and managing partner at Rice Park. “We feel this milestone highlights the growing interest of those who recognize the value of our strategic and hands-on method to investing. Rice Park’s investment strategies span the mortgage ecosystem, from origination and servicing to the capital markets. Because of our collective experiences as operators and investors, we believe that we have a unique and deep understanding of the mortgage ecosystem that allows us to be more value-add investors.”
RPC Ventures provides capital to early-stage and mid-stage real estate and mortgage technology businesses that the team believes have the potential to transform and reshape their marketplace, have a path to profitability and have the potential for a strategic exit.
Rice Park believes today’s mortgage market has the potential to undergo transformational change as origination costs have hit record highs over the past year. Because of the reliance on people in the origination process, Rice Park believes the industry is susceptible to the boom and busts of the cycle. With increasing innovations and AI, technology has the potential to play an increasingly significant role in the mortgage process.
“We are continuing to see opportunities to bridge gaps between legacy technology systems with new technology and AI which we feel will provide significant cost savings, create alternative revenue streams, and bring data into decision making and interactions with customers, resulting in a better journey for the consumer,” says Chris Bixby, managing director of strategic equity investing at Rice Park.
“Historically the mortgage industry has been slow to adopt tech solutions. But we believe that the integration of technology in the mortgage sector began accelerating post-COVID and will continue as Millennial and Gen Z homebuyers enter the market. Our commitment to helping innovative startups through the commercialization phase of growth remains a priority as we move forward, providing the essential support and resources needed for their success.”
Last year, RPC Ventures launched an advisory board comprised of individuals involved in businesses that are complementary to the types of sectors in which Rice Park invests in to help with market insight and support.