True North, a private equity firm, has signed a deal with Home First Finance Company (HFFC) to acquire a majority of its stake for about $100 million.
The agreement has completed its last round, confirmed by both the sides. True North will invest half of the money into the company and the other half will be used to pay the existing shareholders.
HFFC, the mortgage company, had its 45-50 per cent stake with Tata Capital Growth Fund and Bessemer Venture Partners. The two founders Jaithirth (Jerry) Rao and PS Jayakumar have about 40 per cent of shares combinedly and the rest is shared with management under the leadership of CEO Manoj Vishwanath.
“Besides True North, the management will have a 10% stake in the company and balance about 30% will be with these investors,” says Divya Sehgal, Partner, True North.
HFFC’s prime focus is to fund affordable housing sector. It offers mortgage loan to low and middle-income customers who want to buy their first homes. As of now, more than Rs 1,000 crore worth home loans have been disbursed by the company for over 1,000 families in 30 cities.
Source: ET Realty