This exciting investment in HomeEquity Bank will enable the business to continue its next stage of growth and innovation
TORONTO, July 4, 2022 /CNW/ - Ontario Teachers' Pension Plan Board ("Ontario Teachers'") announced today that it has completed the acquisition of HOMEQ Corporation ("HomeQ"), the parent company of HomeEquity Bank, from Birch Hill Equity Partners Management Inc. ("Birch Hill") and the other minority shareholders of HomeQ, in a deal that was first announced in September 2021.
The acquisition by Ontario Teachers' represents the organization's continued vision for investing in successful Canadian financial services businesses like HomeEquity Bank, which is focused on serving retired Canadians through pioneering approaches to building wealth and financial security.
"We look forward to supporting HomeEquity Bank's growth and believe in its incredible potential," says Jeff Markusson, Senior Managing Director, Financial Services, Private Capital at Ontario Teachers'. "They have impressive growth prospects, a compelling value proposition, a high-quality management team and share our vision of enhancing the lives of retired Canadians."
HomeEquity Bank is Canada's leading bank offering reverse mortgage solutions including the flagship CHIP Reverse Mortgage. The value of HomeEquity Bank's total reverse mortgage portfolio under management now stands at $5.7 billion.
With a 35-year track record of helping Canadians 55 and older stay in place by accessing the equity in their homes, HomeEquity Bank is well positioned for sustained growth as more Canadians near retirement age and seek solutions to create income and build wealth. HomeEquity Bank had more than $1 billion in reverse mortgage originations in 2021, a first for the bank and a 28 per cent increase over 2020.
"We're incredibly proud of Ontario Teachers' confidence and investment in our business and vision," says Steven Ranson, President and Chief Executive Officer of HomeEquity Bank. "We will continue working hard to serve the needs of Canadian homeowners age 55+ with innovative financial planning solutions. I would also like to thank Birch Hill for fully supporting HomeEquity Bank's goals and success for the past nine years."
Ontario Teachers' was advised by TD Securities Inc. as financial adviser, with Blake, Cassels & Graydon, LLP as legal adviser. Legal adviser to HomeQ was Torys LLP.
About HomeEquity Bank
HomeEquity Bank is a Schedule 1 Canadian Bank offering a range of reverse mortgage solutions including the flagship CHIP Reverse Mortgage™ product. The company was founded more than 35 years ago to address the financial needs of Canadians who wanted to access the equity of their top asset – their home. The Bank is committed to empowering Canadians aged 55 plus to live the retirement they deserve, in the home they love. HomeEquity Bank is a portfolio company of Ontario Teachers' Pension Plan Board, a global investor that delivers retirement income for 333,000 current and retired teachers in Ontario. For more information, visit www.chip.ca
About Ontario Teachers'
Ontario Teachers' Pension Plan Board (Ontario Teachers') is a global investor with net assets of C$241.6 billion as at December 31, 2021. We invest in more than 50 countries in everything from equities to real estate to infrastructure and venture growth, to deliver retirement income for 333,000 current and retired teachers in Ontario.
With offices in Hong Kong, London, San Francisco, Singapore and Toronto, our more than 350 investment professionals bring deep expertise in industries ranging from agriculture to artificial intelligence. We are a fully funded defined benefit pension plan and have earned an annual total-fund net return of 9.7% since the plan's founding in 1990. At Ontario Teachers', we don't just invest to make a return, we invest to shape a better future for the teachers we serve, the businesses we back, and the world we live in. For more information, visit otpp.com and follow us on Twitter @OtppInfo.
SOURCE HomeEquity Bank
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