real estate services

Levine Leichtman Buys Ugly Houses

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Levine Leichtman Capital Partners (LLCP) has acquired HomeVestors of America from Franchise Brands LLC. HomeVestors’ senior management team partnered with LLCP on this transaction.

HomeVestors of America is a privately owned real estate company that sells We Buy Ugly Houses franchises to investors. The franchisees provide real estate services by buying homes in need of repair and homes that owners need to sell more quickly than usually can be done through a realtor. Typically, HomeVestors franchisees then renovate and sell or rent them, and franchisees hold the homes they purchase for six months on average.  The company has approximately 800 franchisees purchasing approximately 8,000 homes annually in 120 markets throughout the United States.

HomeVestors was founded in 1996 and is led by Co-President David Hicks. The company is headquartered in Dallas (www.homevestors.com). “We are excited to partner with David Hicks and the rest of the management team who have successfully led the growth of HomeVestors and solidified its position as the leading franchisor of real estate investment services,” said Lauren Leichtman, Co-Founder and CEO of LLCP. “We look forward to working with management as they continue to expand the franchise across the country.”

Levine Leichtman manages approximately $7 billion of capital through private equity partnerships, distressed debt and leveraged loan funds. The firm is based in Los Angeles with offices in Chicago, Dallas, New York, London and The Hague (www.llcp.com).

“I am delighted to partner with LLCP as HomeVestors seeks to advance in its next stage of growth. LLCP’s resources and experience as a leading franchise investor will be critical in the continued development of the company and I look forward to leveraging LLCP’s strategic and financial expertise,” said Mr. Hicks.

The investment in HomeVestors will be made out of Levine Leichtman Capital Partners Private Capital Solutions, LP.

© 2017 Private Equity Professional | April 28, 2017

Silver Oak Acquires Butler Burgher

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Silver Oak Services Partners has led the recapitalization of Butler Burgher Group in partnership with founder and CEO Diane Butler and other members of the company’s senior management team.

Butler Burgher Group (BBG) is a national provider of commercial real estate appraisals, appraisal management services, environmental and property assessments. Customers of BBG are typically real estate owners and financing institutions.  BBG operates from 21 office locations and has the ability to provide its services in all fifty states.  The company was founded in 1992 and is headquartered in Dallas (www.bbgres.com).

Silver Oak believes commercial real estate appraisal services is an attractive sector, with similar market dynamics to other fee-based financial services sectors in which the firm has previously invested.  “We are very excited to partner with Diane Butler and the rest of the team at BBG.  The company has a successful track record and a strong reputation in the market,” said Greg Barr, Managing Partner at Silver Oak.  “We believe BBG is poised for significant growth following several new office openings and a recent acquisition, each expanding the company’s geographic presence and capabilities.”

Silver Oak makes control investments of $10 million to $30 million in companies with revenues from $15 million to $150 million and EBITDAs from $3 million to $20 million. Sectors of interest include business services, healthcare services, and consumer services.  Silver Oak is based in the Chicago suburb of Evanston (www.silveroaksp.com).

“We are excited about our partnership with Silver Oak, which provides the additional capital resources and expertise we need to continue building the leading, independent appraisal services firm in the market,” said Ms. Butler.

Deloitte Corporate Finance was the financial advisor to BBG.

© 2015 PEPD • Private Equity’s Leading News Magazine • 8-5-15