Rothschild backs ACE Group

José Rojo
08 April 2015

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Edmond de Rothschild Investment Partners (EdRip) has acquired 30% of mortgage broker service provider ACE Group.

The Paris-based firm invested alongside ACE senior executives Frank Levy and Thierry Jover, who secured a joint 5% stake. Levy and Jover were appointed as the company's new managing director and franchise network director, respectively.

The company's founder and CEO Joël Boumendil reinvested to retain all remaining shares.

Negotiations began in October 2014 and concluded at the start of 2015, with actual capital deployment taking place in March. According to EdRip, its interest in ACE group stems from the growth potential of the French mortgage brokerage industry.

While "lagging behind" some of its European counterparts, the firm foresees expansion in the sector following changes to French regulation in 2013.

EdRip invested via its small-cap Cabestan Capital fund. The vehicle raised €113m in 2011 and has since targeted investments between €2-7m (€11m in the event of follow-up rounds) in companies with a turnover between €10-100m.

The company intends to use the funds to expand across France, with plans to double the number of offices it operates.

Debt
The transaction featured a debt package supplied by Banque Populaire Rives de Paris and the Caisse d'Epargne Ile-de-France.

Company
Founded in 1995 by Joël Boumendil, ACE is a mortgage broker that specialises in locating and negotiating mortgage terms for property buyers. Headquartered in Paris, on average, the company brokers 10,000 loans a year from its 45 offices across France.

People
EdRip was represented by investment director Romain Ohayon, partner Alexandre Foulon and associate Pierre Cavalier. Joël Boumendil is president at ACE Group.

Advisers
Equity – ACA Nexia, Herve Krissi, Paul Arlet (Financial due diligence); Granrut, Sandra Matas, Nicolas Duboille (Legal, tax, environmental due diligence).
Company – LL Berg, Olivier Abergel, Gaëlle Quillivic (Legal); Delaby & Dorison, Emmanuel Delaby, Romain Jousselin (Legal); Crédit Suisse, Valérie Labastie, Michael Herrmann, Marie-Clemence Harang (Corporate finance); Eight Advisory, Lionnel Gerard, Ileana Randazzo, Thomas Dorival (Financial due diligence).