Athene to cash in on one of the most successful investments in its history
Athene Holding will sell its stake in AmeriHome Mortgage Company to a subsidiary of Western Alliance Bancorporation.
Athene and Apollo Global Management will both sell their stakes in AmeriHome, which is the third largest correspondent mortgage acquirer in the US. It was founded in 2013 by AmeriHome management and funds affiliated with Apollo and subsidiaries of Athene to provide capital to US homeowners and residential mortgage originators.
The purchase price represents approximately 1.4x adjusted tangible book value based on December 31, 2020 financials. The transaction is expected to close in Q2 2021, subject to regulatory approvals and other closing conditions.
Jim Furash, chief executive officer of AmeriHome, said: “Apollo and Athene have been invaluable partners in incubating AmeriHome from a start-up in 2013 to one of the country’s leading mortgage originators and servicers. AmeriHome’s success, and today’s transaction, would not have been possible without the investment and strategic partnership of the teams at Apollo and Athene.”
Jim Belardi, chief executive officer of Athene, said its investment in AmeriHome demonstrates its differentiated alternative investment strategy, which seeks long-term investments in operating businesses it can help grow while making attractive returns.
“Athene’s strategic partnership with Apollo provides a unique sourcing capability to invest in opportunities like AmeriHome, which has been one of the most successful investments in our history,” he said.