Houlihan Lokey is pleased to announce that Home Point Financial Corporation, a portfolio company of Stone Point Capital LLC, has acquired Stonegate Mortgage Corporation (NYSE: SGM) in an all-cash transaction valued at $211 million. The transaction closed on May 31, 2017.
In connection with the transaction, Stonegate Mortgage shareholders received $8.00 per share in cash, representing a total transaction value of $211 million. The per share price represents a premium of approximately 61% over SGM's 90-day volume-weighted average price on January 26, 2017, and a 34% premium over SGM's closing price on January 26, 2017. The transaction was unanimously approved by Stonegate Mortgage's Board of Directors and its shareholders accounting for over 99% of SGM shares who were present and voted at a special meeting held on April 27, 2017. On a pro-forma basis, the transaction will position Home Point Financial as a top-25 mortgage originator and servicer.
Home Point Financial is a national multi-channel mortgage originator and servicer. With the goal of providing a superior customer experience, Home Point Financial has an innovative approach to lending, focusing on speed, quality, and consistency for customers and partners. Located in Ann Arbor, Michigan, Home Point Financial is a subsidiary of Home Point Capital LP, a financial services holding company founded in 2014 and owned by members of management and investment funds managed by Stone Point Capital LLC.
Stone Point Capital is a financial services-focused private equity firm based in Greenwich, Connecticut. The firm has raised and managed six private equity funds—the Trident Funds—with aggregate committed capital of approximately $13 billion. Stone Point Capital targets investments in the global financial services industry, including investments in companies that provide outsourced services to financial institutions, banks and depository institutions, asset management firms, insurance and reinsurance companies, insurance distribution and other insurance-related businesses, specialty lending and other credit opportunities, mortgage services companies, and employee benefits and healthcare companies.
Founded in 2005, Stonegate Mortgage is a leading publicly traded mortgage company that originates, finances, and services agency and non-agency residential mortgages through its network of retail offices and approved third-party originators. Stonegate Mortgage also provides financing through its fully integrated warehouse lending platform, NattyMac.
This transaction represents another high-profile transaction for Houlihan Lokey's Financial Institutions practice and highlights the firm's position as the preeminent advisor in the residential mortgage sector. With this transaction, Houlihan Lokey also further strengthens its credentials as a premier advisor in transactions involving publicly traded companies.