Private Equity Firm Stone Point Capital Acquires Situs Holdings


January 7, 2015

One of the biggest acquisitions of early 2015 happened on Tuesday afternoon when the deal between Stone Point Capital and Situs Holdings was announced. It is believed the commercial real-estate service firm will be sold to the private equity firm in a deal worth nearly $200 million.


Speculation over the Deal
The first speculation broke in the early hours of Tuesday, when Nasdaq reported on a possible deal. It cited people close to the deal, who didn’t wish to be named at the time.


Situs Holdings has been one of the leading firms in the commercial real-estate service industry, with the firm’s chairman, Mr Ranieri, being credited as one of the inventors of the residential mortgage-bond market in the late 1970s. The firm didn’t suffer a great deal during the financial crisis in 2008 and Nasdaq said the firm “has underwritten about $125 billion in U.S. and European commercial real-estate deals since 2012”.


It was thought the deal wouldn’t be published until later this week, but the speculation in the papers led Situs Holdings and Stone Point Capital to announce the deal late on Tuesday evening.


Details of the Deal
It is expected that the deal will close during the first quarter of 2015. It is subject to customary closing conditions and the firms need to make sure they get the regulatory approval.


Although the firms announced the acquisition, neither party disclosed any details of the transaction. But reports by the Wall Street Journal claim the deal could be worth up to $200 million.

One of the details announced was that current Situs’ president, Steve Powell, will continue to be the CEO of the firm and help during the development period, according to Multi Housing News.


An Expected Partnership
The deal between the two firms doesn’t come as a major shock to the experts. The private equity firm Stone Point Capital currently has six private equity funds. It has previously targeted the global financial services industry with its investments. But the firm also has history in investing in mortgage service companies as well as healthcare companies.


In a joint statement, Chuck Davis, CEO of Stone Point Capital, told the two firms have been aware of each other since 2010 and that the firm is “delighted to be partnering with them [Situs Holdings]”. Davis went on to say that Stone Point Capital believes “Situs is well positioned for growth as the market increasingly utilizes outsourced CRE services.”


Steve Powell continued with the sentiment stating the deal with Stone Point “along with the innovative solutions and services that Situs provides, will allow us to further expand our capabilities to benefit our clients. Given the current solid market conditions in our industry, I look forward to leading the Situs executive management team through this galvanizing high-growth stage.”


According to the Wall Street Journal, financing and sale activity in the commercial real-estate industry is on the increase, especially in the US.


The deal continues with the relatively busy last year for private equity in the real estate industry. If you want to find out other similar deals currently taking place, you can find all the latest deals at DealMarket.

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