We recently featured on an article in mergermarket.com, which was an interview with Co-founder Paul Wiwatowski about CRe8’s current situation and goals within the next few years.
Here is a copy of the article, if you wish to find out more about Merger Market please feel free to visit their website (mergermarket.com).
“CRe8 Home and Finance seeks funding ahead of planned exit in two years
CRe8 Home and Finance, a privately held Australian deposit lender, is seeking AUD 2.5m (USD 1.8m) through the sale of a 35% stake to sophisticated investors ahead of a planned exit in two years, said co-founder Paul Wiwatowski, who owns the company with another co-founder.
BlueMount Capital is the Melbourne-based company’s corporate advisor. It also uses small external accounting and legal advisers and will re-assess its advisory needs closer to the exit date, Wiwatowski said.
The planned fundraise would give CRe8 Home and Finance a post-raise valuation of some AUD 10m and will help it gain credibility with potential financiers, Wiwatowski said. It is looking to secure AUD 50m through debt financing to fund its lending operations, he said, noting that it expects a valuation of around AUD 40m in two years.
The company has had talks with several fund managers and major Australian banks and is confident of securing the funding by end-2015, Wiwatowski said, noting that this will be sufficient to fund the company’s lending business for the next two years.
The longer-term goal is to exit ideally via a trade sale, with a stock exchange listing as an alternative, Wiwatowsi said. His preference is for a trade sale as he would like to see the company continue growing under Australian owners.
Potential buyers would include the company’s debt funders as purchasing the business would give them an opportunity to refinance it, Wiwatowski said. CRe8 Home and Finance could also be attractive to fund managers, venture-capital and private-equity firms, he added, noting that the company has had interest from smaller PE firms keen to assist it with its debt raise with a view to undertaking a buy-out in the longer term.
CRe8 Home and Finance has also had interest from an investment banker in the US that specializes in listing Australian companies and is keen to explore such options for CRe8 Home and Finance, Wiwatowski noted.
CRe8 Home and Finance provides no-deposit home loans to home owners who can service the total repayments including first and second home owners, property investors and overseas investors, according to its website.
by Louise Weihart in Sydney”
CRe8 is an innovative developer of products and systems that provide solutions to needs in the property and finance industries. For more information please visit assob.com.au/chf (login required, sign up is free)