New York-based Long Ridge Equity Partners has put an undisclosed amount of funding into independently-owned mortgage lender Stonegate Mortgage. Terms were not released. Stonegate will use the funds to expand its retail branch network through acquisitions.
Stonegate Mortgage, one of the nation’s largest and fastest-growing independently-owned mortgage lenders, announced today that it has recently completed a private equity transaction with Long Ridge Equity Partners, a New York-based private investment firm.
Stonegate plans to use the capital to expand its portfolio of mortgage servicing rights and continue its growth in the correspondent and wholesale loan origination channels. The additional capital will also allow Stonegate to pursue expansion of its retail branch network through select acquisitions.
“We are well-positioned to act as an aggregator for depositories and correspondents who are selling loans on a servicing released basis into the secondary market; we intend to become an industry leader in this space.” said Jim Cutillo, CEO of Stonegate. “In addition, we have the resources to acquire small to mid-size mortgage bankers who need capital and warehouse lines to grow their businesses. We are confident that we can execute our plan, while maintaining our commitment to providing an outstanding experience for all of our clients – both institutional and retail.”
“We see a clear opportunity for an independent, non-bank, mortgage lender and servicer like Stonegate to establish itself as a leading player in the industry,” said Kevin Bhatt, Partner at Long Ridge Equity Partners. “Since founding Stonegate in 2005, Jim Cutillo has proven to be an exceptional leader and has built a team and platform capable of capitalizing on the current dislocation in the mortgage industry.”
The company is also actively pursuing the purchase of existing mortgage servicing rights from banks who face balance sheet and regulatory constraints and later this year plans to launch a non-agency jumbo program.
Under terms of the agreement, Stonegate has added Rich Mirro to its Board of Directors. Mr. Mirro is the former Chairman and CEO of North American Mortgage, which was the nation’s 10th largest lender under his leadership. Previously, Rich served as Chairman and CEO of Fleet Mortgage and COO of Chase Manhattan Mortgage.
“We are excited to have Rich on our team, his experience and insight will be invaluable as we pursue our strategic growth plan,” said Cutillo.
Jim Brown and Kevin Bhatt of Long Ridge Equity Partners will also join Stonegate’s Board in connection with the transaction.
About Long Ridge Equity Partners
Long Ridge Equity Partners is a private equity firm focused on the financial services industry. Leveraging deep sector knowledge and an extensive network of industry resources, Long Ridge serves as a value-added partner to high-growth financial services businesses. Over the last decade, Long Ridge’s principals have sponsored some of the most successful growth companies in the financial sector, providing strategic resources and capital to drive profitable expansion. Long Ridge actively seeks growth capital and special situations investments in a range of financial sub-sectors including financial technology, specialty finance, securities and trading, asset management, payments, and exchanges.
For more information on Long Ridge Equity Partners, please visit www.lrepllc.com
About Stonegate Mortgage Corporation
Stonegate Mortgage Corporation is one of the largest and fastest growing independent, non-bank, mortgage lenders and servicers in the U.S., according to Inc. Magazine. Backed by Long Ridge Equity Partners, a New York based private investment firm, Stonegate acquires loans on retail, wholesale and correspondent basis through a network of retail branches and approved third party originators, which include depository institutions, mortgage bankers and mortgage brokers.