Case Study: Choice Aggregation Services
In February 2005 Quadrant completed a buy-out of Choice Aggregation Services (Choice). At this time Choice had a loan book of approximately $6 billion.Choice was a top 5 national mortgage broker in Australia utilising the aggregator model with brokers able to trade under the Choice name or their own. Significant growth through acquisition was achieved following Quadrant’s investment with the acquisition of Fintrack in July 2005 doubling its loan book to $13 billion and the acquisition of Mortgage Find in December 2005 adding a further $1 billion to the loan book.
Quadrant’s rationale for investment was as follows:
- One of the first to market - established in the infancy of the mortgage broking industry
- Industry consolidation opportunities
- Management team with significant banking and finance experience
- Sound and profitable relationship with lenders
- Industry leading IT systems
In September 2007 Choice was sold to Challenger Financial Group. Quadrant funds achieved a return of 4.2 times money invested and an IRR of 79%.
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