Better.com adds Series C funding; New Residential to buy DGG RE
Better.com has closed a Series C funding round and added $160 million in new capital, bringing the online mortgage lender's total funding up to $254 million.
New investors included Activant Capital, Ping An Global Voyager Fund, Ally Financial, Citi, AGNC, Healthcare of Ontario Pension Plan and American Express Ventures. They joined existing Better.com shareholders Goldman Sachs, Pine Brook and Kleiner Perkins in the round.
Better.com is currently originating approximately $375 million per month, putting it on pace to generate over $4 billion this year. Its second-quarter production, at $1 billion, surpassed its total origination numbers for 2016 and 2017 combined.
"The capital we've raised will enable us to accelerate our investment in product development, grow our strategic partnerships, expand our team and scale our platform to continue making it easier for borrowers to get home financing," founder and CEO Vishal Garg said in a press release.
New York-based Better.com anticipates hiring an additional 400 people in sales and technology by the end of this year.
In other capital markets news, New Residential Investment Corp., also headquartered in New York, has agreed to purchase DGG RE Investments, which does business as Guardian Asset Management. Guardian is a field services and property management firm.
"This investment in Guardian presents a great opportunity for New Residential to add a leading field services business to our platform," Michael Nierenberg, chairman, CEO and president of New Residential, said in a press release. "The addition of Guardian, coupled with our existing investment in Covius, would allow New Residential to take another step forward in our strategy of building a full suite of ancillary services and growing revenues and earnings for our shareholders."
Under the terms of the agreement, Guardian will continue to operate with its current brand and leadership. The transaction is expected to close in the fourth quarter of 2019, subject to customary closing conditions. The purchase price was not disclosed.
"As part of New Residential, we will be able to serve New Residential's existing portfolio as well as attract new industry-wide clients," Guardian CEO Jerry Mavellia said in the press release. "This is truly an exciting relationship for Guardian customers, vendors and employees and will help position our business for strong growth in the future."
New Residential has been an active player in the capital markets. The company recently raised $250 million in a preferred stock offering. It also previously completed two common stock offerings that raised gross proceeds of over $1.1 billion, and recently made a play to buy the forward mortgage business of Ditech Holding. Last year, New Residential closed on the acquisition of Shellpoint Partners and its mortgage business, New Penn. New Penn has since been rebranded as NewRez.