Ontario Teachers' Pension Plan bought the company to maintain strong track record: HomeEquity Bank CEO
The Ontario Teachers' Pension Plan Board has announced plans to purchase the parent company of reverse mortgage-issuer HomeEquity Bank.
The deal would see the Ontario-based fund acquire HomeQ Corporation from Birch Hill Equity Partners Management Inc. Financial terms were not disclosed.
"HomeEquity Bank is an excellent fit for our growing portfolio of leading financial services firms,” said Karen Frank, senior managing director of equities at Ontario Teachers', in a news release.
“We believe the company has a high-quality management team, a solid value proposition for consumers and room to grow their business given Canada's aging population as well as the increased attractiveness of staying in your own home as you age."
Toronto-based HomeEquity Bank is best known for its CHIP reverse mortgage (once known as the Canadian Home Income Plan), which is designed for homeowners aged 55 and up.
“We are excited about the value Ontario Teachers' will bring as we continue to serve Canada's rapidly growing retiree population,” said Steven Ranson, president and chief executive officer of HomeEquity Bank, in a release. “Its long-term capital profile, track record of delivering retirement solutions and our shared vision of making a positive impact on the lives of retired Canadians makes Ontario Teachers' a natural partner for us."
The deal hinges on regulatory approval. In the news release, the parties said they expect conditions to be met in the second half of 2022.