Investment bank Moelis Australia is establishing a bigger presence in the residential mortgage market, with the acquisition of mortgage business MKM Capital.Moelis announced yesterday that it would pay A$5.4 million for an initial 47.5 per cent interest in MKM. It will purchase another 25 per cent in 2023 and move to full ownership in 2025.The deal also includes Moelis providing a $4.3 million subordinated loan as part of MKM's capital structure and committing to as much as $20 million of future mezzanine funding to support loan growth.MKM was established in 2004 and has offices in Sydney and Melbourne. It has a loan book worth about $120 million.Moelis says that in addition to supporting MKM with funding, it will invest in marketing, systems and product development.Moelis said in an ASX statement that it had been active in the residential lending market for some time.According to its 2019 financial report, the company manages $900 million of credit assets, including corporate bonds and other fixed income assets, bridging finance with first mortgage security, receivables finance, construction finance, and commercial and consumer finance.