Financial management company Woori BMO Group has recently commented on Finance of America as they consider an Initial Public Offering through an SPAC deal.
TORONTO, ONTARIO , Oct 16, 2020 – Woori BMO Group has today commented on Blackstone Group-backed consumer-leading platform Finance of America Equity Capital LLC as they get set to go public with a valuation of $1.9 billion through a publicly traded special purpose acquisition company (SPAC) merger, the popular way to list this year.
“Finance of America is merging with the special-purpose acquisition company Replay Acquisition Corp. This will give the company a valuation of $1.9 billion. The company will also receive $250 million in investment from institutional investors as part of the deal,” commented Christian Harper, Director of EMEA Wealth Management at Woori BMO Group.
As a result of the transaction, the Pennsylvania-headquartered company’s founder and CEO Bill Dallas and funds managed by Blackstone will be left with a 70% ownership stake.
This year, SPACs have emerged as a popular IPO substitute for some businesses, offering a route to going public with less regulatory oversight and more clarity about the valuation that will be reached and the funds that will be raised.
“So far in 2020, U.S. SPACs have raised $53.8 billion through IPOs, which is more than the total raised in the last seven years,” commented Director of Institutional Equity at Woori BMO Group, Andrew Williams.
Finance of America has generated over $65 billion in loans through its collection of companies since 2017, according to researchers at Woori BMO Group. The company operates in four emerging markets including Commercial Real Estate, Mortgages, Reverse Mortgages and Fixed Income Investing. In recent years, Blackstone has evolved Finance of America through a series of acquisitions, including purchases of Gateway Funding, Pinnacle Capital Mortgage and Skyline Home Loans.
In the third quarter, Finance of America generated over $7.4 billion, the highest of any quarter on record for the end-to-end lending and services platform. Like other mortgage lenders, the Blackstone portfolio company has highly benefited from ultra-low interest rates and a huge demand for refinancing business.
About Woori BMO Group
Founded in 2007, Woori BMO Group is a full-service wealth management company providing both corporate institutions and private clients a tailored financial advisory service from its retail office in Toronto, Canada.
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