Clearlake Capital Group has kicked in financing for investment group Peer Advisors’ acquisition of reverse mortgage loan sub-servicer Celink. No financial details were provided.
(Lansing, MI) – August 28, 2013 – Peer Advisors LLC, an investment group focused on opportunities in the emerging senior housing finance market, today announced that it has signed a definitive agreement to acquire 100% of the stock of Celink, the largest sub-servicer of reverse mortgage loans in the nation. Terms of the transaction were not disclosed.
Peer Advisors is led by Jim Mahoney, Jason McNamara and Al Benedetti. Following the close of the transaction, Mahoney will serve as Chairman of Celink and McNamara will serve as CEO of the company, which will remain based in Lansing, Michigan. Celink Founder and CEO John LaRose has agreed to remain as a consultant to the company. Ryan LaRose will remain Celink’s President and COO, and Benedetti will serve as Executive Finance Director.
“Celink is a great company that takes excellent care of borrowers and that lenders and issuers have come to count on for quality servicing,” said Mahoney, a reverse mortgage industry pioneer and former longtime CEO and Chairman of Financial Freedom as well as one of the founding Directors of the National Reverse Mortgage Lenders Association (NRMLA). Mahoney further commented, “We believe the Celink platform, coupled with the human and financial capital of Peer Advisors, will position the company to continue meeting the needs of its client base and new borrowers as it builds its product offerings. We look forward to working with the Celink team to build on the excellent foundation laid by John and Ryan as we seek to play a pivotal role in the growing reverse mortgage industry.”
Celink exclusively serves the reverse mortgage market and is licensed or approved in all 50 states, Puerto Rico and the U.S. Virgin Islands. The company has a best-in-class servicing software platform for all types of HECM products as well as proprietary products. The company looks to expand its client base as more reverse mortgage originators and Ginnie Mae HMBS issuers look to outsource loan servicing given the cost benefits and domain expertise that Celink provides its clients in a highly regulated industry.
LaRose said, “The Peer Advisors team brings a diverse set of skills, proven leadership, and an inspiring vision. They are a perfect fit to help take Celink to the next level while ensuring our borrowers, our clients, our industry and our employees can expect the highest level of service and integrity.”
Santa Monica, California based Clearlake Capital Group (“Clearlake”) is providing Peer Advisors with financing for the transaction. “The combination of the leading independent sub-servicer of reverse mortgages, Celink, and the experienced team at Peer Advisors is very exciting, and we are pleased to play a pivotal role in this industry shaping transaction,” said Steve Chang, a Partner at Clearlake. “We believe Celink is poised for ongoing, strong growth as the reverse mortgage sector continues to evolve, and we believe that Peer is the perfect partner to help steward this exciting path.”
Peer Advisors’ purchase of Celink is subject to customary closing conditions, including regulatory approvals by GNMA, the U.S. Department of Housing and Urban Development (HUD), the Federal National Mortgage Association (FNMA), and the states and territories in which Celink operates.
Celink is the nation’s select and largest, independent reverse mortgage servicer and is licensed in all 50 states, as well as Puerto Rico and the U.S. Virgin Islands. Celink’s reverse mortgage servicing portfolio includes 211,000 loans with a value exceeding $32.8 billion. A full organizational profile is available at: www.celink.com.
About Peer Advisors LLC
Peer Advisors LLC is focused on the emerging senior housing finance market, including reverse mortgages. It was formed by three key principals: Jim Mahoney, who has been involved in the development, design, marketing, origination, and servicing of home equity conversion loans (reverse mortgages) since 1990; Jason McNamara, a marketing and technology thought leader with 20 years of experience leading multi-million dollar growth in start-ups as well as public and multi-national organizations; and Al Benedetti, who has been in the reverse mortgage industry since 1989 and joined Mahoney at Financial Freedom when it purchased Transamerica HomeFirst, Inc. in 1999.
About Clearlake Capital Group
Clearlake Capital Group, L.P. is a private investment firm focused on special situations and private equity investments such as corporate divestitures, recapitalizations, buyouts, reorganizations, turnarounds and other equity investments. Clearlake seeks to partner with world-class management teams by providing patient, long-term capital and operational expertise to invest in dynamic businesses. Clearlake currently manages approximately $1.4 billion of equity capital, and Clearlake’s founding principals have led over 70 investments totaling more than $3.0 billion of capital in sectors including financial services, business services, communication, consumer products/retail, defense/public safety, energy/power, healthcare, industrials, media, and technology. For more information, please visit www.clearlakecapital.com.