Narrow Gauge Capital buys Class Appraisal


Narrow Gauge Capital said March 26 that it closed its buy of Class Appraisal LLC. Financial terms weren’t announced. ICG Strategic Equity and Aberdeen Standard Investments co-invested in the deal. Class Appraisal, of Troy, Michigan, provides real estate asset valuation and appraisal management solutions to the residential mortgage industry. Keefe Bruyette & Woods provided financial advice to Class Appraisal in the transaction, while Bass Berry & Sims PLC served as legal counsel. Berkery Noyes acted as financial adviser to NGC, and Winston & Strawn LLP served as legal counsel.

PRESS RELEASE

BOSTON, March 26, 2018 /PRNewswire/ — Narrow Gauge Capital (“NGC”) today announced it has completed the acquisition of Class Appraisal, LLC. (“Class” or the “Company”). Class Appraisal is a leading nationwide provider of real estate asset valuation and appraisal management solutions to the residential mortgage industry. Class is one of the fastest-growing and most respected companies in the industry, offering its clients the highest levels of service and performance in the appraisal management process.
“Class Appraisal is a tremendous company that offers the absolute best service model that we have seen in the appraisal management business,” said Adam Doctoroff, partner at NGC. “Class has developed an incredible company culture, operational excellence, and a trusted partnership with industry-leading clients and top-performing appraisers that will generate continued significant growth.”
“Narrow Gauge Capital has developed deep knowledge of the mortgage industry and has consistently demonstrated its strong commitment to providing unmatched client service and world-class technology,” said Alex Elezaj, CEO of Class Appraisal. “Our new ownership will allow us to continue to invest in our service offering for the benefit of all of our customers,” he added.
“We have made great progress over the past several years and are excited to work with Narrow Gauge to enhance our market-leading position,” said Jon Tallinger, Vice President of Sales and Marketing for Class Appraisal.
ICG Strategic Equity and Aberdeen Standard Investments provided equity co-investment in the transaction alongside Narrow Gauge Capital. Keefe Bruyette & Woods, A Stifel Company, acted as exclusive financial advisor to Class Appraisal in the transaction, and Bass Berry & Sims PLC served as legal counsel to the Company.  Berkery Noyes served as exclusive financial advisor to NGC in the transaction, and Winston & Strawn LLP served as legal counsel.
About Class Appraisal
Class Appraisal, based in Troy, Michigan, is one of the largest and fastest-growing appraisal management companies in the country. Class Appraisal has partnered with over 400 mortgage lenders and over 6,000 of the highest performing residential appraisers in the country. Class has consistently been ranked #1 in client service by several of the nation’s Top 10 mortgage lenders, and has been recognized as a top place to work, along with receiving many industry awards from NAMB, HousingWire, and MPA. For more information, please visit www.classappraisal.com
About Narrow Gauge Capital
Narrow Gauge Capital, based in Boston, is a private equity firm controlled by Adam Doctoroff and Travis Metz, who formerly invested on behalf of Monitor Clipper Partners, LLC, an independent private equity firm formed in 1997 which managed in excess of $2 billion. NGC pursues buyouts and recapitalizations in growth-oriented businesses with strong management teams. NGC is currently pursuing transactions in areas where it has specialized expertise and past transaction experience, including health care services, financial services, building products, distribution and logistics.

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