Washington, Jan. 31 (BUS) – Arcapita Group Holdings (“Arcapita”), the alternative investment firm, has announced the acquisition of a controlling stake in Nationwide Property and Appraisal Services, LLC (“Nationwide”).
The company is the second largest independent appraisal management firm in the United States, serving mortgage lending institutions in all 50 states of funds associated with Corridor Capital, LLC (“Corridor”), a leading private equity firm in the lower middle market. Corridor will partner with Arcapita and Nationwide, while retaining an ownership stake in Nationwide.
Nationwide is a market leader with a network of over 15,000 licensed appraisers, with clients including over 100 top lenders and 21 of the top 25 wholesale lenders in the United States.
The company has industry leading evaluation response times and accuracy rates. After completing and merging five additional acquisitions over the past few years, the company’s revenue has grown at a compound annual growth rate of 14.3% over the past four years and Nationwide management estimates revenue and adjusted EBITDA of $144 million and $15 million, respectively, in 2021.
“We are very pleased to complete the acquisition of Nationwide. This investment is well suited to our US private equity investment strategy focused on acquiring light business and logistics firms, and also allows us to leverage our deep expertise in global real estate,” Atif Abdulmalik, Arcapita’s CEO said.
“We have been attracted by a critically acclaimed Nationwide company, experienced management team and strong customer base across the country. Nearly 50% of Nationwide customers have maintained their relationship with the company for more than 6 years, highlighting the longevity of customer relationships, and the company benefits of a free cash flow conversion rate of over 99%.”
“Residential real estate is the largest asset class in the United States, with sound fundamentals driven by population growth in the initial home buying demographics, and increasing levels of new home construction,” said Neil Carter, managing director and head of US private equity at Arcapita.
“As valuations are a regulatory requirement for mortgages to buy new homes, refinance, and foreclosures, the $7.5 billion real estate appraisal services market has cumulatively grown 32% since 2008. Nationwide is an industry leader and well positioned to accelerate growth. organic, increasing efficiency, achieving margin improvements through its technology-enabled platform, and continuing to complete cumulative acquisitions.”
“Nationwide is extremely pleased to be partnering with Arcapita, a leading alternative asset management partner, who shares a common vision for the future and will support Nationwide in continuing to build on its core strengths in customer service, purposeful acquisitions and technology investment,” Sri Vilamati, CEO of Nation, said. Wade.
“We are grateful for Corridor Capital’s ongoing partnership, which is a testament to their faith in Nationwide. Nationwide and its partners share the true goal of becoming a true leader in the appraisal management services industry that serves the interests of both its lending clients and appraisal suppliers by adopting best-in-class service models and investing in technology to simplify the appraisal process. The next chapter in the Nationwide story will bring real change in the industry for everyone.”
Arcapita’s management team has completed more than $15 billion in US private equity investments over the past 24 years. The company’s US private equity investment strategy has mainly focused on acquiring light business and logistics companies that take advantage of the trend of large organizations to outsource their non-core activities, such as facilities management, to reduce costs and achieve operational efficiencies.
Bird worked as an exclusive financial advisor for property and valuation services nationwide.
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