Gridiron Capital has acquired Troy, Michigan-based Class Valuation, a provider of regulatory-compliant appraisals to mortgage lenders and originators. The seller was Narrow Gauge Capital, which will retain a minority ownership stake in the company. No financial terms were disclosed.
NEW CANAAN, CT, April 8, 2021 – Gridiron Capital, LLC (“Gridiron Capital”), an investment firm focused on partnering with founders, entrepreneurs, and management teams, today announced it has acquired Class Valuation (the “Company”), a leading, technology-enabled appraisal management company (“AMC”) focused on providing regulatory-compliant appraisals to the nation’s largest mortgage lenders and originators. Gridiron Capital will partner with and support Class Valuation’s management team as they continue to execute on a shared vision for growth and strategic innovation within the residential valuation services industry. Gridiron is acquiring Class Valuation from Narrow Gauge Capital (“NGC”), which will retain minority ownership in the Company.
Headquartered in Troy, Michigan, Class Valuation is a leading nationwide appraisal management company. The Company’s proprietary technology enhances every aspect of the home valuation process and leverages advanced analytics and data to assess appraisal accuracy and regulatory compliance. Leveraging technology across all workflows within the appraisal management process allows Class Valuation to deliver high-quality valuations to residential mortgage lenders with industry-leading turnaround times.
“Class Valuation has experienced substantial growth over the last several years as a result of providing clients with industry-leading appraisal turnaround times and consistently strong customer service. With Gridiron’s partnership, we look forward to building on this momentum,” said John Fraas, Chief Executive Officer of Class Valuation. “We plan to leverage Gridiron’s extensive experience investing in technology-enabled business services to remain at the forefront of the home valuation industry.”
“We are excited to partner with this outstanding management team and leverage our firm’s Centers of Excellence to maximize the Company’s potential,” said Tom Burger, Managing Partner at Gridiron Capital. “Gridiron Capital has extensive experience investing in similar business models that utilize technology to compete more effectively, and we are confident this partnership will position Class Valuation for further growth and continued long-term success.”
“This is a great opportunity to bring together Class Valuation’s superior model, and Gridiron’s relevant experience in technology-enabled business services to create a market leader in the residential valuation services industry,” said Will Hausberg, Managing Director at Gridiron Capital.
“Since Narrow Gauge partnered with Class Valuation in 2018, the Company has established itself as the technology and service leader in its market. We are grateful to the management team for their hard work in building the Company, and are excited to be involved in its future success,” said Adam Doctoroff, Partner at Narrow Gauge Capital.
Jefferies LLC served as lead financial advisor to Class Valuation, with Berkery Noyes also advising and Winston & Strawn serving as legal counsel. William Blair & Company provided financial advisory for Gridiron Capital with Finn Dixon & Herling LLP serving as legal counsel.
About Class Valuation
Class Valuation is a top nationwide Appraisal Management Company (AMC), delivering outstanding quality and service to every client. The company is committed to combining the best people, products, processes, and technology available to help lenders make more homeownership dreams come true. Class has consistently been ranked highly in client service by several of the nation’s top ten mortgage lenders and has been recognized as a top place to work, along with receiving many other industry awards. Founded in 2009, Class Valuation is headquartered in Troy, Michigan. For more information, please visit www.classvaluation.com.
About Gridiron Capital, LLC
Gridiron Capital is an investment firm focused on partnering with founders, entrepreneurs, and management teams, and creating value by building middle-market companies into industry leaders in branded consumer, B2B and B2C services, and niche industrial segments in the United States and Canada. We help transform growing companies by winning together through hard work, partnerships grounded in shared values, and a unique culture that comes from hands-on experience building and running businesses. As a team led by former operators and entrepreneurs, we know what it takes to run successful businesses on a day-to-day basis. Additional information is available on the firm’s website: www.gridironcapital.com.