Guaranteed Rate sells big stake to equity fund

by Ryan Smith18 Dec 2017
A private equity fund has purchased an ownership stake in Guaranteed Rate.

Thomas H. Lee Partners (THL), a private equity firm that invests in middle-market growth companies, has purchased “a meaningful minority stake” in Guaranteed Rate, the company announced in a news release. Guaranteed Rate founder Victor Ciardelli will continue to serve as chairman and CEO, running day-to-day operations.

“THL has a long history of successfully collaborating with fast-growing companies like Guaranteed Rate, and they also bring the experience, capital and resources that will enhance our capabilities and help us move closer to achieving our ultimate goal of becoming the country’s largest retail mortgage lender,” Ciardelli said.

“When evaluating different opportunities in the mortgage space, it became clear to us that Guaranteed Rate is well-positioned to thrive and grow market share moving forward, and that it is a great company to partner with in the mortgage market,” said Ganesh Rao, THL managing director.

Chicago-based Guaranteed Rate is the sixth-largest retail mortgage lender in the country, operating in all 50 states. This is the first time since the company’s founding in 2000 that it’s sold a stake to an outside institutional investor, according to a Chicago Tribune report.

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