Complementary businesses are the foundation for
building U.S. housing infrastructure
ORIX USA (ORIX), a division of leading international financial
services group ORIX Corporation, announced today the
acquisition of Lancaster Pollard Holdings LLC (“Lancaster
Pollard”). Based in Columbus, Ohio, Lancaster Pollard is a provider
of integrated investment banking, mortgage banking, balance sheet
lending and private equity services focused on the full continuum
of senior living and healthcare clients. Lancaster Pollard is also
a leading FHA/HUD Lean senior living lender. After signing a
definitive agreement to acquire Lancaster Pollard on June 9, 2017,
ORIX completed the transaction on Sept. 12, 2017.
“As a continued commitment to building American infrastructure,
ORIX has made another investment in a high-value brand serving the
senior living and healthcare sectors,” said Hideto Nishitani, ORIX
USA’s Chairman, President and CEO. “The acquisition of Lancaster
Pollard is a natural extension of ORIX’s successful strategy of
acquiring leaders in affordable, seniors and healthcare housing
finance, as evidenced by our previous acquisitions of RED Capital
Group and Boston Financial Investment Management. Having these
three companies under the ORIX umbrella extends our ability to
improve the quality of life in our communities through investments
in seniors housing and healthcare.”
Lancaster Pollard is a new separate subsidiary of ORIX alongside
RED Capital Group (“RED”) and Boston Financial Investment
Management (“Boston Financial”). All three ORIX subsidiaries will
continue to operate as separate companies with their current
management. Andrew Garvey, Senior Managing Director and Head of
ORIX Commercial Mortgage Servicing, will have overall
responsibility across the three businesses, managing the
synergistic growth opportunities provided by the larger
platform.
“There is a great deal of synergy between Lancaster Pollard, RED
and Boston Financial, with all three companies focused on the vital
sectors of housing and healthcare for our most in-need
populations,” said Lancaster Pollard CEO Nick Gesue. “Our firm and
ORIX share strong and unique high-performance cultures. With its
proven track record of profitability and growth, ORIX holds the
intellectual and financial capital that will fuel and accelerate
the growth of our company. We’re thrilled with the confidence that
one of the largest global financial services companies has shown in
our platform and employees, and together we are positioned for a
new chapter in our company’s history, focused on innovation and
growth.”
With a strategy of growing its multifamily, seniors and
affordable housing businesses, ORIX bought an 88 percent stake in
RED in May 2010, making it the foundation of ORIX Commercial
Mortgage Servicing. Last year, ORIX reaffirmed its commitment to
RED by purchasing the remaining 12 percent interest in the company.
RED is recognized for its 27 years of industry expertise,
innovative and comprehensive structures, and consistently high
rankings. The company has provided over $75 billion of integrated
debt and equity capital since 1990. RED is a Fannie Mae DUS®
lender, a MAP- and Lean FHA lender and a Freddie Mac small balance
lender with a combined mortgage servicing portfolio exceeding $16
billion.
In July 2016, ORIX acquired Boston Financial. The acquisition
combined the financial strength and innovative capital solutions of
ORIX with Boston Financial’s 48-year history and track record as
one of the largest syndicators in the Low-Income Housing Tax Credit
(LIHTC) industry. Since its inception, Boston Financial has raised
over $11 billion of low-income housing and historic tax credit
equity, and acquired over 2,400 properties.
Moving forward under the ORIX Commercial Mortgage Servicing
umbrella, Lancaster Pollard will focus on the financial, capital
and advisory needs of senior living and healthcare clients, and RED
will do the same in the affordable and market rate multifamily
sectors. Boston Financial will continue to provide tax credit
equity and related development capital to all three housing
sectors.
“ORIX Commercial Mortgage Servicing is well-positioned to make a
positive impact on the U.S. housing infrastructure through the
subsidiaries of Boston Financial, Lancaster Pollard and RED,”
Garvey said. “Further, we believe that having RED focus on its
leading position in affordable and market rate multifamily housing
and Lancaster Pollard focus on its leading position in seniors and
healthcare housing will provide clients with the highest level of
expertise and service and also ensure optimal coordination with the
housing agencies and FHA. Together, this group of well-known,
industry-leading brands will provide a comprehensive product
offering, seasoned sector expertise, unparalleled client coverage
and high levels of service.”
Advisers for ORIX USA on the transaction included Beekman
Advisors Inc. and Houlihan Lokey Inc. for financial and Weil,
Gotshal & Manges LLP for legal. For Lancaster Pollard, Credit
Suisse Securities (USA) LLC served as financial adviser and Kramer
Levin Naftalis & Frankel LLP as legal adviser.
For more information, visit www.orix.com/lancasterpollard.
ORIX USA Corporation
Since 1981, ORIX USA has provided innovative capital solutions
that clients need to propel their business to the next level. Based
in Dallas, ORIX USA has a team of more than 900 employees spanning
more than 30 offices across the U.S. and Brazil. ORIX USA and its
family of companies offer investment capital and asset management
services to clients in the corporate, real estate, municipal and
energy sectors, while holding $8 billion of assets and managing an
additional $34 billion, approximately. Its parent company, ORIX
Corporation, is a Tokyo-based, publicly owned international
financial services company with operations in 36 countries and
regions worldwide. ORIX Corporation is listed on the Tokyo (8591)
and New York Stock (IX) Exchanges. For more information on ORIX
USA, visit www.orix.com.
Lancaster Pollard
Lancaster Pollard helps healthcare and senior living providers
expand and improve their services by providing a full range of
investment banking, mortgage banking, private equity, balance sheet
financing and M&A advisory services. Lancaster Pollard &
Co. LLC, a registered broker/dealer, underwrites taxable and
tax-exempt bonds, and provides debt placement and syndication, as
well as M&A advisory services. Lancaster Pollard Mortgage
Company originates, underwrites and services mortgage loans insured
or guaranteed by governmental agencies. Lancaster Pollard Finance
Co. LLC provides balance sheet financing. The Propero™ Seniors
Housing Equity Fund LLC provides equity financing for the new
development and acquisition of seniors housing and care properties.
Lancaster Pollard has provided over $20 billion in debt and equity
capital since its inception and its mortgage servicing portfolio
exceeds $6 billion. The firm’s home office is in Columbus, Ohio,
and it has regional banking offices in Atlanta, Ga; Austin;
Bozeman, Mont.; Chicago, Ill.; Denver, Colo.; Kansas City, Kan.;
Minneapolis, Minn.; Newport Beach, Calif.; and Philadelphia, Pa.
For more information, visit www.lancasterpollard.com.
Cautionary Language Concerning Forward-Looking
Statements
This press release contains, and oral statements made from time
to time by our representatives may contain, forward-looking
statements that are based upon our current expectations and
assumptions concerning future events, which are subject to a number
of risks and uncertainties that could cause actual results to
differ materially from those anticipated. The words "expect,"
"anticipate," "estimate," "forecast," "initiative," "objective,"
"plan," "goal," "project," "outlook," "priorities," "target,"
"intend," "evaluate," "pursue," "commence," "seek," "may," "would,"
"could," "should," "believe," "potential," "continue" or the
negative of any of those words or similar expressions are intended
to identify forward-looking statements. All statements contained in
this press release, other than statements of historical fact,
including, without limitation, statements about the benefits of the
transaction, objectives, expectations and intentions, strategies,
business initiatives, prospects and the expected development of the
industry in which Lancaster Pollard, RED and Boston Financial
operates, are forward-looking statements that involve certain risks
and uncertainties outside of our control.
You should not place undue reliance on the forward-looking
statements contained in this press release. These forward-looking
statements speak only as of the date on which the statements were
made.
We undertake no obligation to update or revise any
forward-looking statements, except where expressly required by
law.
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version on businesswire.com: http://www.businesswire.com/news/home/20170913005392/en/
ORIX USA CorporationAmanda Rider,
972-770-5083arider@marketwave.bizorJeff Smith,
214-237-2301Jeff.smith@orix.com