Levine Leichtman Capital Partners has sold HomeVestors of America Inc to Bayview Asset Management. Levine Leichtman generated a return of more than 7 times its invested capital on the HomeVestors investment, according to a source familiar with the transaction. William Blair & Company served as lead financial advisor to HomeVestors on the deal. Headquartered in Dallas, HomeVestors is a real estate investment franchisor.
LOS ANGELES, CA – January 11, 2022 — Levine Leichtman Capital Partners (“LLCP”), a Los Angeles-based private equity firm, announced today that it has sold its portfolio company HomeVestors of America, Inc. (“HomeVestors” or the “Company”) to funds managed by Bayview Asset Management, LLC (“Bayview”), a global investment management firm focused specifically on investments in finance, mortgage and consumer credit.
HomeVestors is a leading real estate investment franchisor, providing services and education to franchisees seeking to operate their own independent, residential real estate investment business. The Company generates proprietary real estate investment opportunities through advertising campaigns that utilize the “We Buy Ugly Houses®” national brand. HomeVestors was founded in 1996 and is headquartered in Dallas, Texas.
Matthew Frankel, Managing Partner of LLCP, said, “HomeVestors has an exciting future as the leading franchisor of real estate investment services and largest home buyer in the U.S., and we wish the team continued success. David Hicks and his management team have driven significant growth during LLCP’s investment through strong same-store sales and exceptional growth of the franchise base. In addition, we are proud that the Company’s growth was enhanced by our collaboration on specific value creation initiatives, including technology investments, expanding the vendor network and adding additional revenue streams. We are very grateful for the terrific partnership we had with the HomeVestors team during a period of incredible growth for the Company.”
David Hicks, CEO of HomeVestors, commented, “We could not be more grateful for LLCP’s support over the course of our partnership. LLCP’s experience in franchising was key to our choice of a private equity partner given their quick understanding of our business and ability to offer valuable insight and guidance. We have appreciated LLCP’s support in advancing our strategic initiatives and have benefitted greatly from the collaboration. While we will miss LLCP and their valuable strategic additions to the Company, we believe that HomeVestors’ best days are ahead of us, and we look forward to executing on that growth alongside Bayview.”
The sale of HomeVestors is LLCP’s seventh successful exit in the last year, following West Academic, Best Lawyers, Caring Brands, FlexXray, Trinity Consultants and Nothing Bundt Cakes.
William Blair & Company served as the lead financial advisor to HomeVestors, with support from North Point, and Kirkland & Ellis LLP served as legal counsel to HomeVestors with support from Locke Lord LLP in connection with the sale.
About Levine Leichtman Capital Partners
Levine Leichtman Capital Partners, LLC is a middle-market private equity firm with a 38-year track record of investing across various targeted sectors, including franchising, business services, education and engineered products. LLCP utilizes a differentiated Structured Private Equity investment strategy, combining debt and equity capital investments in portfolio companies. This unique structure provides a less dilutive solution for management teams and entrepreneurs, while delivering growth and income with a significantly lower risk profile.
LLCP’s global team of dedicated investment professionals is led by seven partners who have worked at LLCP for an average of 22 years. Since inception, LLCP has managed approximately $12.8 billion of institutional capital across 15 investment funds and has invested in over 90 portfolio companies. LLCP currently manages $8.9 billion of assets and has offices in Los Angeles, New York, Chicago, Charlotte, Miami, London, Stockholm and The Hague.