Ontario Teachers’ Pension Plan Board announced this week that it has completed the acquisition of HOMEQ Corporation, the parent company of Canada’s leading reverse mortgage provider HomeEquity Bank. The Board acquired the company from Birch Hill Equity Partners Management Inc. Terms of the deal were not disclosed.
In a deal first announced last fall, the Pension Plan Board — which is responsible for administering defined-benefit pensions for school teachers of Ontario, the Canadian province which is home to the city of Toronto — was described for RMD as a “world-leading Canadian institutional investor, [which] sees incredible potential in our product and market,” according to HomeEquity Bank’s EVP of Marketing and Sales Yvonne Ziomecki at the time.
“We’re incredibly proud of Ontario Teachers’ confidence and investment in our business and vision,” said Steven Ranson, president and CEO of HomeEquity Bank in a statement. “We will continue working hard to serve the needs of Canadian homeowners age 55-plus 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.”
For the Board’s part, they see the acquisition as a critical investment step to support the clients it serves.
“We look forward to supporting HomeEquity Bank’s growth and believe in its incredible potential,” said 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.”
When asked last year about what attracted Ontario Teachers’ to the HomeEquity Bank acquisition, Ziomecki told RMD that the company’s track record and the trajectory of the nation’s reverse mortgage business played critical roles.
“It is impressed with our growth and will invest in HomeEquity Bank for the future,” Ziomecki explained in September 2021. “Its long-term capital profile, strong track record of delivering retirement solutions, and shared vision for making a positive impact on the lives of retired Canadians make it a natural partner for us.”
Birch Hill initially acquired HomeQ and HEB in 2012 in a deal valued at the time at C$136 million (roughly $130.6 million USD today accounting for inflation), according to Bloomberg.