ORIX USA (ORIX), a division of leading international financial services group ORIX Corporation, recently announced the acquisition of Lancaster Pollard Holdings LLC (“Lancaster Pollard”). Based in Columbus, Ohio, Lancaster Pollard is a provider of integrated investment banking, mortgage banking, balance sheet lending and private equity services focused on the full continuum of senior living and healthcare clients. Lancaster Pollard is also a leading FHA/HUD Lean senior living lender. After signing a definitive agreement to acquire Lancaster Pollard on June 9, 2017, ORIX completed the transaction on Sept. 12, 2017.
“As a continued commitment to building American infrastructure, ORIX has made another investment in a high-value brand serving the senior living and healthcare sectors,” said Hideto Nishitani, ORIX USA’s Chairman, President and CEO. “The acquisition of Lancaster Pollard is a natural extension of ORIX’s successful strategy of acquiring leaders in affordable, seniors and healthcare housing finance, as evidenced by our previous acquisitions of RED Capital Group and Boston Financial Investment Management. Having these three companies under the ORIX umbrella extends our ability to improve the quality of life in our communities through investments in seniors housing and healthcare.”
Lancaster Pollard is a new separate subsidiary of ORIX alongside RED Capital Group (“RED”) and Boston Financial Investment Management (“Boston Financial”). All three ORIX subsidiaries will continue to operate as separate companies with their current management. Andrew Garvey, Senior Managing Director and Head of ORIX Commercial Mortgage Servicing, will have overall responsibility across the three businesses, managing the synergistic growth opportunities provided by the larger platform.
“There is a great deal of synergy between Lancaster Pollard, RED and Boston Financial, with all three companies focused on the vital sectors of housing and healthcare for our most in-need populations,” said Lancaster Pollard CEO Nick Gesue. “Our firm and ORIX share strong and unique high-performance cultures. With its proven track record of profitability and growth, ORIX holds the intellectual and financial capital that will fuel and accelerate the growth of our company. We’re thrilled with the confidence that one of the largest global financial services companies has shown in our platform and employees, and together we are positioned for a new chapter in our company’s history, focused on innovation and growth.”
With a strategy of growing its multifamily, seniors and affordable housing businesses, ORIX bought an 88 percent stake in RED in May 2010, making it the foundation of ORIX Commercial Mortgage Servicing. Last year, ORIX reaffirmed its commitment to RED by purchasing the remaining 12 percent interest in the company. RED is recognized for its 27 years of industry expertise, innovative and comprehensive structures, and consistently high rankings. The company has provided over $75 billion of integrated debt and equity capital since 1990. RED is a Fannie Mae DUS® lender, a MAP- and Lean FHA lender and a Freddie Mac small balance lender with a combined mortgage servicing portfolio exceeding $16 billion.
In July 2016, ORIX acquired Boston Financial. The acquisition combined the financial strength and innovative capital solutions of ORIX with Boston Financial’s 48-year history and track record as one of the largest syndicators in the Low-Income Housing Tax Credit (LIHTC) industry. Since its inception, Boston Financial has raised over $11 billion of low-income housing and historic tax credit equity, and acquired over 2,400 properties.
Moving forward under the ORIX Commercial Mortgage Servicing umbrella, Lancaster Pollard will focus on the financial, capital and advisory needs of senior living and healthcare clients, and RED will do the same in the affordable and market rate multifamily sectors. Boston Financial will continue to provide tax credit equity and related development capital to all three housing sectors.
“ORIX Commercial Mortgage Servicing is well-positioned to make a positive impact on the U.S. housing infrastructure through the subsidiaries of Boston Financial, Lancaster Pollard and RED,” Garvey said. “Further, we believe that having RED focus on its leading position in affordable and market rate multifamily housing and Lancaster Pollard focus on its leading position in seniors and healthcare housing will provide clients with the highest level of expertise and service and also ensure optimal coordination with the housing agencies and FHA. Together, this group of well-known, industry-leading brands will provide a comprehensive product offering, seasoned sector expertise, unparalleled client coverage and high levels of service.”
Advisers for ORIX USA on the transaction included Beekman Advisors Inc. and Houlihan Lokey Inc. for financial and Weil, Gotshal & Manges LLP for legal. For Lancaster Pollard, Credit Suisse Securities (USA) LLC served as financial adviser and Kramer Levin Naftalis & Frankel LLP as legal adviser.
