Bahrain-based global alternative investment firm Arcapita Group Holdings announced that it has acquired a significant controlling interest in Nationwide Property and Appraisal Services LLC. Nationwide, the second largest independent appraisal management company in the United States, serves mortgage lending institutions across all 50 states from funds associated with Corridor Capital LLC, a lower middle market private equity firm. Corridor will partner with Arcapita and Nationwide, retaining an ownership stake in Nationwide.
Nationwide boasts a network of over 15,000 licensed appraisers, with its clients including more than 100 blue-chip lenders and 21 of the top 25 wholesale lenders in the U.S. The company has industry-leading appraisal turnaround times and accuracy rates, it said. Having completed and integrated five add-on acquisitions over the past few years, the company has grown revenues at a CAGR of 14.3% over the past four years, and Nationwide management estimates revenue and an adjusted EBITDA of $144 million and $15 million, respectively, in 2021.
“This investment is a good fit for our U.S. private equity investment strategy, which is focused on acquiring asset-light business services and logistics companies and also allows us to bring to bear our deep expertise in global real estate,” said Atif A. Abdulmalik, Arcapita’s chief executive officer. “We were attracted by Nationwide’s highly cash-generative business, experienced management team and strong base of clients across the country. Close to 50% of Nationwide’s customers have maintained its relationship with the company for over six years, highlighting the longevity of its customer relationships, and the company benefits from a free cash flow conversion rate of over 99%.”
Arcapita’s management team has completed over $15 billion in U.S. private equity investments over the past 24 years. The firm’s U.S. private equity investment strategy has predominantly focused on acquiring asset-light business services and logistics companies which benefit from the trend for large organizations to outsource its non-core activities, such as facilities management, to reduce costs and achieve operational efficiencies.
Baird served as the exclusive financial advisor for Nationwide Property and Appraisal Services.
