Newfi Announces Majority Sale to Athene from Warburg Pincus

Rhea-AI Summary

Newfi, a technology-driven mortgage lender, has confirmed a definitive agreement to sell a majority interest to Athene from Warburg Pincus. The investment will be managed by Apollo. This deal aims to enhance Newfi's capabilities in the non-agency mortgage space and comes during a period of record earnings growth. Founder Steve Abreu will continue to lead the company, which boasts over $6 billion in originations. The transaction is expected to close in Q1 2022, pending regulatory approvals.

Positive

• Newfi experiencing record earnings growth in 2021.
• Transaction expected to enhance Newfi's market presence in single-family lending.
• Strong management continuity with CEO Steve Abreu and Chief Risk Officer Michelle Constantine retaining positions.

Negative

• None.

EMERYVILLE, Calif., Oct. 18, 2021 /PRNewswire/ -- Newfi, a technology driven multi-channel mortgage lender, today announced the execution of a definitive agreement to sell a majority shareholder interest to Athene (NYSE: ATH) from Warburg Pincus, a leading global growth investor. The investment in Newfi will be managed by Apollo (NYSE: APO). The transaction marks the next chapter in Newfi's evolution, allowing the Company to expand its footprint and compound its expertise in the non-agency mortgage space. This transaction comes at a time of significant momentum for Newfi, which continues to experience record earnings growth and volume in 2021.

Based in Emeryville, CA, Newfi is reshaping the borrowing experience for homeowners through a combination of proprietary technology and product innovation. The Company has a national presence with a strong focus on non-agency lending and a growing consumer direct outlet. With this transaction, the Company will continue to invest in its infrastructure and look to capitalize on the significant growth opportunity.

Founder and CEO Steve Abreu will continue to lead Newfi and will retain his equity position.  Co-founder Michelle Constantine will also remain as the Company's Chief Risk Officer. Together they have taken the Company from a small operation to a multifaceted lender with over $6 billion in originations and a strong trajectory for growth.

"This move allows Newfi to combine its capital market expertise with Athene's balance sheet and deep knowledge in the mortgage space, accelerating Newfi's presence in single family lending," said Steve Abreu, Founder and CEO of Newfi.

"We are proud to have partnered with Newfi over the past five years and have seen the company experience substantial growth over this time. We wish Steve and his team continued success," said Eric Friedman, Managing Director at Warburg Pincus.

Nancy De Liban, Apollo Senior Partner and Head of Consumer and Residential Credit, added, "We are excited to bring Athene and Apollo's significant experience in mortgage lending to our partnership with Newfi." Neil Mehta, Apollo Partner and Head of Strategy, added, "We look forward to working with Steve and the Newfi team to support the platform's exciting growth trajectory."

The transaction is expected to close in the first quarter of 2022 subject to satisfaction of customary closing conditions including state mortgage and other regulatory approvals.

Houlihan Lokey served as exclusive financial advisor to Newfi and Kirkland & Ellis LLP in conjunction with Weintraub Tobin served as legal advisor to Newfi. Zuckerman Gore Brandeis & Crossman served as employment counsel for Steve Abreu and Michelle Constantine. Sidley Austin LLP served as legal advisor to Athene and Apollo.

About Warburg Pincus
Warburg Pincus LLC is a leading global growth investor. The firm has more than $67 billion in private equity assets under management. The firm's active portfolio of more than 215 companies is highly diversified by stage, sector, and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 20 private equity funds, which have invested more than $97 billion in over 960 companies in more than 40 countries. The firm is headquartered in New York with offices in Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and Singapore. For more information please visit www.warburgpincus.com.

About Apollo
Apollo is a high-growth, global alternative asset manager. The firm seeks to provide its clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three business strategies: yield, hybrid and opportunistic. Through its investment activity across its fully integrated platform, Apollo serves the retirement income and financial return needs of its clients, and offers innovative capital solutions to businesses. Apollo's patient, creative, knowledgeable approach to investing aligns its clients, businesses it invests in, its employees and the communities it impacts, to expand opportunity and achieve positive outcomes. As of June 30, 2021, Apollo had approximately $472 billion assets under management. To learn more, visit www.apollo.com.

Contact for Warburg Pincus
Sarah Bloom
Sarah.bloom@warburgpincus.com

Contact for Apollo
For Investors:
Noah Gunn
Global Head of Investor Relations
Apollo Global Management, Inc.
(212) 822-0540
IR@apollo.com

For Media:
Joanna Rose
Global Head of Corporate Communications
Apollo Global Management, Inc.
(212) 822-0491
Communications@apollo.com

View original content:https://www.prnewswire.com/news-releases/newfi-announces-majority-sale-to-athene-from-warburg-pincus-301402242.html

SOURCE Newfi

FAQ

What is the significance of Athene's acquisition of Newfi?

Athene's acquisition allows Newfi to leverage its balance sheet and expertise to strengthen its position in the non-agency mortgage market.

When is the Newfi and Athene transaction expected to close?

The transaction is expected to close in the first quarter of 2022, subject to customary regulatory approvals.

What are the latest financial metrics for Newfi?

Newfi has achieved over $6 billion in originations, showcasing significant growth in 2021.

Who will manage Newfi after the sale to Athene?

The investment in Newfi will be managed by Apollo, with current leadership remaining in place.

What was Warburg Pincus’ role in the Newfi transaction?

Warburg Pincus was the previous majority shareholder and facilitated the sale of Newfi's majority interest to Athene.