Guaranteed Rate, the Chicago-based mortgage lender, announced plans this week to sell a large stake of the company to Boston-based private equity firm Thomas H. Lee Partners.
The firm is making an investment that’s believed to be worth more than $100 million, according to Crain’s, who first reported the news. The deal is slated to close early next year and is the first time that the company is selling stake to outside institutional investors.
Guaranteed Rate, founded in 2000 by Victor Ciardelli, is now the nation’s sixth largest retail mortgage lender in the U.S, operating in every state. Terms of the deal weren’t disclosed, but Ciardelli will remain CEO and chairman of the board, and continue running the company’s day-to-day operations.
A portion of the money will be used to buy back shares by private investors who helped launch the company, while the remaining funds will be used to build on its current framework to improve and streamline the mortgage process, the companies said. Additionally, Guaranteed Rate will be making investments in technology, marketing and recruiting.
“We are thrilled to announce our new partnership with THL as we enter another exciting phase of our growth strategy,” Ciardelli said in a statement. “THL has a long history of successfully collaborating with fast-growing companies like Guaranteed Rate, and they also bring the experience, capital and resources that will enhance our capabilities and help us move closer to achieving our ultimate goal of becoming the country’s largest retail mortgage lender.”
Guaranteed Rate, which employs more than 4,000 people nationwide, 700 of which are in Chicago, raked in more than $778 million in revenue in 2016, the company said.
