Ontario Teachers’ Pension Plan Board (“Ontario Teachers’”) announced on 4th July 2022 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.