Roc360 Expands its Leading Portfolio of Brands with Acquisition of Finance of America Commercial Through Asset Sale

Rhea-AI Summary

Roc Capital Holdings announced the acquisition of Finance of America Commercial (FACo) assets, enhancing its portfolio of real estate brands. The transaction, part of Roc360's growth strategy, excludes previously originated loans. FACo has funded over $6 billion in loans, adding valuable capacity to Roc360's offerings. Together, they funded over $4.6 billion in business purpose loans in 2022. Roc360 aims to deliver innovative solutions for real estate investors and improve housing efficiency.

Positive

• Acquisition enhances Roc360's portfolio and market reach.
• FACo adds over $6 billion in loan funding expertise.
• Strengthens Roc360's existing origination capability.

Negative

• None.

NEW YORK, March 14, 2023 /PRNewswire/ -- Roc Capital Holdings LLC ("Roc360"), a vertically integrated platform for residential real estate investors and a leading originator of business purpose loans nationwide, today announced it has closed on the previously announced transaction for Finance of America Commercial ("FACo") assets.

Founded in 2014, Roc360 has funded in excess of $14 billion in loans through its lending subsidiaries.

Under the terms of the transaction, Finance of America Companies Inc. (NYSE:FOA) has sold the operational assets of its FACo division, which specializes in residential real estate investment loans, to Roc360. Excluded from the sale are previously originated loans and the residual in the ANTLR securitization shelf. Roc360 will refresh the brand with a new logo and run it under a new subsidiary using its trusted brand name, Finance of America Commercial, which will join Roc360's growing portfolio of leading real estate brands, including Roc Capital, Haus Lending, Elmsure Insurance, Wimba Title, and Tamarisk Appraisals.

FACo traces its initial roots back over a decade to its predecessor companies B2R Finance, Dwell Finance and Jordan Capital Finance, early players in the national private lending space offering fix and flip and landlord DSCR loans to real estate investors. Since its inception, FACo has funded in excess of $6 billion to over 9,000 individual guarantors across over 25,000 closed loans through its borrower-direct and broker channels.

The FACo acquisition adds additional capacity to Roc360's existing origination footprint within its retail and wholesale channels and the data acquired will further contribute to Roc360's data science efforts. In 2022, the two companies collectively funded in excess of $4.6 billion in business purpose loans. 

"Roc360 is committed to delivering innovative products and services that help rejuvenate and deliver new and like-new energy efficient homes to America's undersupplied housing stock. The acquisition further broadens our reach and ability to make a difference.  We will continue to pursue growth opportunities, including acquisitions, that expand our ability to provide solutions to real estate investors," said Arvind Raghunathan, Ph.D., Founder and Chief Executive Officer, Roc360 family of companies.

Wells Fargo Securities, LLC, acted as financial advisor to Roc360.

About Roc360

Roc360 is a leading financial services platform for residential real estate investors, providing vertically integrated solutions, including lending, servicing, insurance and valuation.  Founded in 2014, Roc360 employs over 300 people and has funded in excess of $14 billion in loans through its lending subsidiaries.  The company is headquartered in New York City with offices on three continents.

In 2022, Roc360 joined the Deloitte Technology Fast 500™, a ranking of the 500 fastest-growing technology, media, telecommunications, life sciences, fintech, and energy tech companies in North America. 

For Roc360 Media Relations: pr@Roc360.com

For more information about Roc360, please visit www.roc360.com

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SOURCE Roc360

FAQ

What assets did Roc360 acquire from Finance of America Companies Inc.?

Roc360 acquired the operational assets of Finance of America Commercial, focusing on residential real estate investment loans.

How much has Finance of America Commercial funded since its inception?

Finance of America Commercial has funded over $6 billion in loans to over 9,000 individual guarantors.

What was the value of loans funded by Roc360 and Finance of America in 2022?

In 2022, Roc360 and Finance of America funded over $4.6 billion in business purpose loans.

How does the acquisition impact Roc360's market strategy?

The acquisition broadens Roc360's reach and enhances its ability to provide solutions for real estate investors.

What is the new branding strategy for Finance of America Commercial?

Roc360 plans to refresh the Finance of America Commercial brand with a new logo and operate it under a new subsidiary.