FLORHAM PARK, NJ-David M. Orbach has formed Gallant Funding LP, a private equity firm based here. The firm will operate as a direct lender with a focus on augmenting traditional loan structures, according to Orbach.The focus will be on serving new buyers and smaller niche borrowers, according to Orbach, who was formerly vice president, general counsel and a member of the board of NorCrown Bank. The latter institution was once primarily owned by Charles Kushner, who was required to divest of his bank holdings because of his legal problems. NorCrown was acquired earlier this year by Valley National Bank.

As far as Gallant Funding, "the current real estate market is strong, especially in New Jersey, and many new buyers are becoming active in the investment sales arena," Orbach says. "We will offer short-term loan to complement traditional financing. Based on a set of criteria, traditional banks and lending institutions must adhere to strict regulations, which sometimes impose limits on borrowers who need to raise additional funding from outside sources.

"For example, a borrower may qualify for just 75% of conventional financing for a specific transaction," Orbach says. "We can participate in funding a portion of the 25% balance to help close the gap with a structure that enables the borrower to remain in control without other partners involved."

The firm will focus on lending for multifamily, office and retail properties in New Jersey, New York and eastern Pennsylvania. Its products will include bridge loans, mezz financing, equity partnership and other "unconventional funding vehicles," according to Orbach.