NEW YORK, Feb. 7, 2014 /PRNewswire/ -- Tiptree Financial Inc. (TIPT) ("Tiptree") announced today that it has completed its previously announced strategic transaction with Luxury Mortgage Corp. ("Luxury Mortgage" or the "Company"). Under terms of the related transaction agreements Tiptree has acquired a majority interest in Luxury Mortgage and its previously funded senior secured term loan remains outstanding.
Luxury Mortgage expects to use the proceeds of the investment to expand operations through additional origination channels such as retail expansion and a new correspondent channel which will focus on acquiring prime credit jumbo loans. With Tiptree's support, Luxury Mortgage will also pursue expansion opportunities through strategic alliances and strategic acquisitions in existing and new markets. Upon closing, Michael Barnes, Executive Chairman of Tiptree, and Geoffrey Kauffman, CEO of Tiptree, joined Luxury Mortgage's Board of Directors in connection with the transaction.
Mr. Barnes stated, "Luxury is the sixth business to become part of Tiptree and, consistent with our previous acquisitions, we intend to support Luxury both strategically and financially while maintaining our focus on providing growth and value to our shareholders."
Mr. David Adamo, CEO of Luxury Mortgage, stated, "Our relationship with Tiptree has been formed over the past three years and we are thoroughly impressed with the leadership team and their proven track record for success. We are equally excited about all of the opportunities that come from being affiliated with a public company that has over $500 million in stockholders' equity."
"Having a partner of Tiptree's caliber will enable us to embark on a strategic plan that will enhance, expand, and broaden our ability to execute several key growth initiatives," added Robert Grosser, President of Luxury Mortgage.
Mr. Kauffman stated, "We believe there is a significant opportunity to continue to grow Luxury Mortgage and to build upon the strong business that David and his team have established. Luxury is an excellent addition to the Tiptree family of companies, and we are looking forward to working with the entire Luxury Mortgage organization."
Coltin Securities was the financial advisor to Luxury Mortgage in the transaction.
About Luxury Mortgage Corp.
Luxury Mortgage, founded in 1996 by CEO David Adamo, is a national mortgage banking firm which specializes in originating prime credit jumbo and agency loans. Luxury Mortgage acquires residential loans on a retail and wholesale basis through a network of retail branches and approved third party originators, which include depository institutions, mortgage bankers and mortgage brokers.
About Tiptree Financial Inc.
Tiptree Financial Inc. is a diversified holding company engaged through its consolidated subsidiaries in a number of businesses and is an active acquirer of new businesses. Tiptree, whose operations date back to 2007, currently has subsidiaries that operate in four industry segments: insurance and insurance services, specialty finance, asset management and real estate. Tiptree is publicly traded on the NASDAQ stock market (TIPT). For additional information, please visit Tiptree's website at www.tiptreefinancial.com.
Cautionary Statement Regarding Forward-Looking Statements
This release contains "forward-looking statements" which involve risks, uncertainties and contingencies, many of which are beyond Tiptree's control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words "anticipate," "believe," "estimate," "expect," "plan," "target," and similar expressions are generally intended to identify forward-looking statements. Such forward-looking statements include, but are not limited to, statements about Tiptree's plans, objectives, expectations and intentions. There are various factors that could cause actual results to differ materially from those in any such forward-looking statements, many of which are beyond Tiptree's control, including economic, business, funding market, competitive and/or regulatory factors. Factors such as these are set forth under the captions "Forward-Looking Statements" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" (or similar captions) in Tiptree's most recent Annual Report on Form 10-K and its quarterly reports on Form 10-Q, and as described in Tiptree's other filings with the Securities and Exchange Commission ("SEC"). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as to the date of this release. We cannot guarantee the accuracy of any such forward-looking statements contained in this release, and Tiptree is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
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