Arcapita CEO Atif Abdulmalik said the firm was attracted by Nationwide’s highly generative cash business, experienced management team, and a strong base of clients across the country.
“Close to 50% of Nationwide’s customers have maintained their relationship with the company for over six years, highlighting the longevity of its customer relationships, and the company benefits from a free cash flow conversion rate of over 99%,” he said.
“With appraisals being a regulatory requirement for mortgages for new home purchases, refinancing, and foreclosures, the $7.5 billion real estate appraisal services market has cumulatively grown by 32% since 2008,” said Neil Carter, managing director and head of US private equity at Arcapita. “Nationwide is a leader in this sector and is well-positioned to accelerate organic growth, drive efficiency and achieve margin improvements through its tech-enabled platform, and continue to complete accretive acquisitions.”
“Nationwide and its partners share the genuine goal of becoming a true leader in the appraisal management services industry that serves the interests of both its lender clients and appraisal vendors through the adoption of best-in-class service models and investment in technology to streamline the appraisal process,” said Nationwide chief executive Sri Velamati. “This next chapter in Nationwide’s story will yield truly industry-altering change for everyone.”