Edmond de Rothschild Investment Partners has teamed up with ACE Group the third-largest mortgage broker in France. The Small Caps fund managed by Edmond de Rothschild Investment Partners is investing in ACE alongside the founder/CEO and his senior executives.
Founded in 1995 by Joel Boumendil in Levallois-Perret, ACE is a major player in the mortgage brokerage arena in France. ACE finds and negotiates the most suitable mortgage terms for property buyers: interest rates, insurance, warranties, terms for early repayment and more. With nearly 10,000 loans brokered annually, ACE represents more than 5% of the French mortgage market, with a volume of about EUR2 billion.
The ACE Group carries out a multi-channel strategy through a national network of 58 branded offices, with 45 franchised offices throughout France and 13 more in the Paris region alone, with seven branches. Its web site offers services such as a mortgage calculator to show the cost of a loan or loan redemption and provides contact information to reach an ACE mortgage specialist.
Against a backdrop of complicated mortgage applications where banks are refocusing on the management of services, mortgage brokers provide added value to individuals wishing to purchase property. In 10 years, the brokerage firm has seen its market share increase from 15% of the French mortgage market to nearly 30% today. With its premium positioning, enhanced by the specialised and certified training of its 250 branch advisers, today the ACE Group stands out as a privileged partner to banks.
Its association with Edmond de Rothschild Investment Partners will now allow the ACE Group to further its growth with the opening of new offices, along with acquisitions, aiming to double its number of offices. It thus intends to consolidate its presence in Ile-de-France and increase its selective locations elsewhere in France to establish its national position. Today, the 3rd largest player in the French market based on number of loans made annually, ACE hopes to become the leading mortgage broker network with its banking partners within five years.
This transaction, which allows the Group to finance the consolidation of 100% of its business scope, sees two of its key executives enter into the capital, alongside Edmond de Rothschild Investment Partners as a minority investor with approximately 30% of the capital. The equity investment was complemented with bank financing raised from Banque Populaire Rives de Paris and the Caisse d'Epargne Ile-de-France.
Joel Boumendil, ACE Group President, says: "I am delighted to be joining up with the Edmond de Rothschild Investment Partners team. This prestigious partner will enable us to accelerate our development at the national level, while confirming our position as a Premium player with our clients and our banking partners."
Romain Ohayon, Investment Director at Edmond de Rothschild Investment Partners, says: "We are fully committed to the positioning of ACE, in a market moving towards institutionalisation which lags behind other European countries. We hope to enable the Group to seize the various new opportunities that arise and wish to thank Joel Boumendil and his team for the trust they have placed in us through this transaction."
