2022 NMHC Top 10 Syndicators

Alliant Capital, a major low-income housing tax credit (LIHTC) syndicator, has begun a new chapter as part of Walker & Dunlop.

It’s a move that’s expected to bolster both companies as they move forward to create a one-stop shop for affordable housing debt and equity. Walker & Dunlop (NYSE: WD) adds Alliant Capital’s LIHTC syndication capabilities to complement its sizable lending platform, while Alliant gains an opportunity to increase its share of the housing tax credit market and bring new products to its developer partners.

“For us, it’s been a great marriage, if you will, because there’s a lot of cultural alignment,” says Dudley Benoit, executive vice president at Alliant Capital. “We’re aligned on a long-term growth strategy and the direction of the combined platform.”

The goal is to create an affordable housing powerhouse and accelerate Walker & Dunlop’s efforts to expand its debt financing, property brokerage, and assets under management as outlined in its Drive to ’25 strategic plan.

The acquisition, which had a total enterprise value of $696 million, closed Dec. 16, 2021, after being announced earlier in the year.

Officials also see opportunities beyond syndicating LIHTCs and providing loans to new affordable housing developments.

Alliant Capital has built a portfolio of approximately 110,000 units, with roughly 50 assets coming out of their “lock-up period” each year. “We’re working with our Walker & Dunlop colleagues to represent those clients as well,” Benoit says. “We’re trying to help our clients in the whole spectrum. If they want to sell their projects at the end, we want to work with them. If they want to refinance after exiting Year 15, we want to do that as well. We’re trying to connect with our development partners through the lifecycle of a LIHTC project.”

The firm raised approximately $535 million in LIHTC capital last year and hopes to raise even more this year. Alliant Capital also sees other opportunities to work with investors. For example, there may be investors who want to grow their balance sheet on the debt side but may not have the capacity to originate transactions. As a result, Alliant Capital is looking at forming correspondent relationships with them, which it would not have been able to do prior to the acquisition, according to Benoit.

As the midyear point approaches, he and others continue to keep a close eye on the LIHTC market for changes.

“We’re all laser-focused on increasing construction costs,” Benoit says. “Everyone is also worried about interest rates. We all have to run sensitivities and underwrite with cushions. The Fed is signaling multiple rate increases this year so we have to take that into account. That will have an effect on the permanent loan side.”