Houlihan Lokey Advises Stearns Holdings

Houlihan Lokey is pleased to announce that Stearns Holdings, LLC (Stearns), a portfolio company of The Blackstone Group Inc. (Blackstone), has been acquired by Guaranteed Rate, Inc. The transaction closed on March 1, 2021.

Stearns is a mortgage holding company with a strategy of investing in, building, and supporting mortgage businesses. Founded in 1989, the company is headquartered in Dallas, Texas, and originates mortgages in all 50 states through its retail, joint venture, and wholesale origination channels. Stearns’ partnership model includes realtor, builder, and relocation joint ventures, private label relationships, and independent mortgage bank preferred partnerships with well-known brands. Stearns is a top 25 independent mortgage lender with more than $20 billion in origination volume in 2020.

Headquartered in Chicago, Guaranteed Rate is one of the largest retail mortgage lenders in the United States, funding over $73 billion in 2020. Founded in 2000 and licensed in all 50 states and Washington, D.C., Guaranteed Rate has helped homeowners nationwide with home purchase loans and refinances. Guaranteed Rate has established itself as an industry leader by introducing innovative technology, offering low rates and delivering unparalleled customer service.

The acquisition will enable Guaranteed Rate to bolster retail loan origination and further scale its joint venture platform while also developing new multichannel capabilities. Combining Stearns’ joint ventures with Guaranteed Rate’s existing joint ventures with Realogy and @properties will create one of the largest partnership platforms in the country. The acquisition also allows Guaranteed Rate to enter the wholesale channel to complement its multichannel distribution vision.

Guaranteed Rate is acquiring Stearns from Blackstone, which will retain an interest in Guaranteed Rate and will continue to support the integration and growth of the Guaranteed Rate vision.

Houlihan Lokey served as the exclusive financial advisor to Stearns and Blackstone and assisted in marketing, structuring, and negotiating the transaction. The transaction highlights Houlihan Lokey’s continued expertise in the mortgage sector.