Ethan Penner, who is credited as being the father of the commercial mortgage-backed securities (CMBS) sector, is setting his sights on the 2026 race for California governor.
The Real Deal reports that Penner, the CEO of Calabasas-based Mosaic Real Estate Investments, is considering the move from the financial services world to politics due to his concern on how California is being governed.
“I am attracted to desperate situations,” said the 64-year-old Penner. “I think California is in a desperate situation today. It suffers from incredible, incredible mismanagement. “I love a good challenge. I love helping people. And I feel that circles a lot of those needs for me.”
Penner is critical of Gov. Gavin Newsom, particularly in his handling of the Los Angeles County wildfires. He noted how Austria, where major cities are surrounded by forests, never faced the level of wildfire destruction that California endured.
“They’ve successfully never had anything like we’ve had in California, because they actually pay attention – they actually care,” he continued. “People in government in Austria go, ‘Gee, I have a job. My job is to make sure that my citizens have a decent quality of life and don’t suffer disasters.’ Our governor doesn’t think that way, and our government doesn’t think that way.”
Penner, who launched the CMBS sector in the 1990s when he was at Nomura Securities, most recently rolled out a $1 billion office mortgage REIT in 2024. He has not officially announced his candidacy, and he ruled out running as a Democrat, preferring a nonpartisan focus. He also pledged not to use his personal finances in a campaign but instead would seek campaign contributions.
Newsom is prevented by law from seeking another term, and the declared candidates for governor include former Los Angeles Mayor Antonio Villaraigosa, former Rep. Katie Porter, and former Secretary of Health and Human Services Xavier Becerra among the Democrats, with Fox News commentator Steve Hilton and Riverside County Sheriff Chad Bianco among the Republicans. Former Vice President Kamala Harris has been touted as a candidate but has not spoken publicly about joining the race.
