CDPQ acquires minority interest in M3 Mortgage Group

Caisse de dépôt et placement du Québec has invested in M3 Mortgage Group, a Montreal-based non-bank mortgage originator and brokerage.

Caisse de dépôt et placement du Québec has acquired a minority stake in M3 Mortgage Group, a Montreal-based non-bank mortgage originator and brokerage. No financial terms were disclosed. The deal will support M3’s acquisition-based growth plan and help the company expand its digital footprint.

PRESS RELEASE

CDPQ invests in M3 Mortgage Group to accelerate its expansion

Montreal, November 9, 2021

Caisse de dépôt et placement du Québec (CDPQ) announces an investment in the M3 Group, the undisputed Canadian leader in mortgage brokerage. The investment will allow the mortgage group to continue driving its ambitious strategic growth plan around acquisitions and help expand its digital footprint in the origination ecosystem.

M3’s brand collective includes Quebec’s largest brokerage, Multi-Prêts Mortgages, as well as Mortgage Alliance, Invis, Mortgage Intelligence and Verico. Together, the group offers mortgage brokerage services and insurance products through its network of over 8,300 brokers across the country. M3 recently announced that it has reached record annual lending volumes of over $67 billion and aims to break through the $100 billion threshold in the next two years.

A long-standing culture of innovative technology
In order to simplify and optimize the mortgage financing process, M3 has sharpened its focus on the integration of digital tools and solutions by making a series of technology investments in its leading proprietary BOSS platform. Most recently, the Group acquired Pinch Financial, an innovative leader in the mortgage industry in addition to partnering with a number of high-profile FinTech organizations. The transaction announced today will allow the group to continue its efforts to move the innovation needle and streamline its technology offering to continue differentiating itself in today’s competitive ecosystem.

“This investment clearly demonstrates the confidence that CDPQ has in our values and vision to transform the industry from a position of strength for all stakeholders by putting our brokers first… always,” said Luc Bernard, Chairman and CEO of M3. “Brokers are counting on our help to differentiate themselves with consumers, and the transaction announced today gives us access to considerable expertise and funds that will support our ambitious growth plan and accelerate its execution.”

“Investing in the expansion of businesses that place innovation at the center of their development is perfectly in line with our investment strategy in Quebec. We are delighted to begin our relationship with M3 and to support them in achieving their growth objectives, which will secure their leadership position in the marketplace,” said Kim Thomassin, Senior Vice-President and Head of Investments in Quebec and Stewardship Investing.

“CDPQ’s investment in us is a testament to the organization’s winning strategy and will allow us to continue our ambitious expansion as the leading non-bank originator in the ecosystem,” says Dino Di Pancrazio, Chief Strategy Officer and Head of M3’s Mortgage Division.

Luc Bernard, Chairman & CEO, as well as the current private group of shareholders, will retain a majority stake in the M3 Group.

ABOUT M3 GROUP
The M3 Group is the #1 non-bank mortgage originator and undisputed leader in mortgage brokerage across Canada. With more than 8,300 brokers and $67+ billion in annual loan volumes on a trailing twelve month basis, the broker-led, data driven, consumer obsessed group and its brand collective, Multi-Prêts Mortgages, Mortgage Alliance, Invis, Mortgage Intelligence, Verico, Simplinsur/SimplAssur, Pinch Financial, M3 Tech, M3 Ventures and YourMortgageMarket.com have a single goal: be the best consumer ally when it comes to serving the financial needs of Canadians from coast to coast.

ABOUT CDPQ
At Caisse de dépôt et placement du Québec (CDPQ), we invest constructively to generate sustainable returns over the long term. As a global investment group managing funds for public retirement and insurance plans, we work alongside our partners to build enterprises that drive performance and progress. We are active in the major financial markets, private equity, infrastructure, real estate and private debt. As at June 30, 2021 CDPQ’s net assets total CAD 390 billion. For more information, visit cdpq.com, follow us on Twitter or consult our Facebook or LinkedIn pages.