Nordic Capital has made an investment in Bilthouse, a German mortgage broker. Alongside its initial investment in the company, Nordic Capital will provide an additional investment of 30 million euros.
05 April 2022 – The financial services providers Baufi24 Baufinanzierung AG, Hüttig & Rompf AG and Creditweb GmbH are joining forces under the umbrella of the new Bilthouse Group. Nordic Capital, a leading private equity investor, will become the majority shareholder of Bilthouse. Nordic Capital will, in partnership with the founders and the management, actively support the new company’s growth, drawing on its experience from previous investments in financial services providers and comparison websites. Alongside its initial investment in the company, Nordic Capital will provide an additional primary capital investment of EUR 30 million to the new holding company, which will help Bilthouse combine and grow its strong online and offline capabilities to create clear value-add for end customers. From the start, Bilthouse will be one of the leading players in the German B2C segment for mortgage brokerage.
“Bilthouse will create added value for people seeking real estate financing. Our three brands address different product segments and help our customers get the best possible financing offers. By bundling our core competencies, we will enable even more people to invest into their own homes,” says Bilthouse CEO Tomas Peeters.
Together, the Bilthouse brands Baufi24, Hüttig & Rompf and Creditweb employ around 700 people. The companies are currently generating a combined mortgage financing volume of around EUR five billion per year. This combination creates a growth platform that will benefit customers, business partners, banks, and employees alike.
Nordic Capital to become majority shareholder and sparring partner
Bilthouse CEO Tomas Peeters: “Nordic Capital is an experienced financial services investor and will be an important sparring partner as well as a source of impetus for our growing company. I am also pleased that Michiel Goris will continue as our Supervisory Board Chairman. Helvetia Venture Fund and BtoV will also remain as investors.”
Christopher Ekdahl, Principal, Nordic Capital Advisors: “Nordic Capital is looking forward to partnering with Bilthouse and to supporting the combination of these great companies. Baufi24, Hüttig & Rompf, and Creditweb all have an impressive track record and very skilful teams. Nordic Capital is convinced of the enormous potential this step has and will actively support the combined company’s ambition to accelerate growth and facilitate consumers’ access to the best possible real estate financing.”
Nordic Capital has extensive experience in developing companies in the financial services sector, both through organic growth and acquisitions. Today, Nordic Capital has six portfolio companies in the sector, including online comparison platform Sambla Group, credit management company Intrum, payment services provider Trustly, and digital retail banks Nordax and Bank Norwegian. “Bilthouse is Nordic Capital’s first investment in the financial services sector in DACH, a region with a lot of potential at the intersection of financial services and technology,” says Christian Frick, Partner and Head of Financial Services at Nordic Capital Advisors.
Great potential in the growth market for retail mortgages
“As early as 2006, when I founded Baufi24, more and more customers were looking for real estate financing online. Our growth proved us right here,” confirms Stephan Scharfenorth, Founder and Board Member of Baufi24. “Personal advice continues to be important and thus our business model complements this trend in an ideal way.”
With a volume of EUR 284 billion last year, retail mortgages represent the largest loan category in the German financing market and therefore offer enormous growth opportunities. With increasing specialisation and growing pressure on traditional financial institutions, the market is shifting toward independent brokers. Bilthouse’s large network combined with the necessary know-how makes it possible to compare prices and thus offer customers the best possible conditions in the highly fragmented market with over 1,000 banks.
Bilthouse will draw on this potential in the attractive German real estate market and help people find the best possible financing options. “The market is shifting towards independent intermediaries. Our multi-brand strategy provides the best environment for personal advisory: advisors with entrepreneurial thinking and motivated employees combined with a smart technological platform to automate core processes,” says Michael Lorenz, Board Member and Co-Founder at Baufi24.