Complementary businesses are foundation for
growth in affordable housing market
ORIX USA today announced the acquisition of Boston Financial
Investment Management LP (“Boston Financial”). ORIX USA signed a
definitive agreement to acquire Boston Financial on April 28, 2016,
and completed the transaction last week. The acquisition combines
the financial strength and innovative capital solutions of ORIX USA
with Boston Financial Investment Management’s 47-year history and
track record as one of the largest syndicators in the Low Income
Housing Tax Credit (LIHTC) industry.
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Hideto Nishitani, ORIX USA Chairman,
President and CEO (Photo: Business Wire)
“This acquisition is a natural extension of ORIX USA’s existing
business and affirms our commitment to the affordable housing
market,” said Hideto Nishitani, ORIX USA’s Chairman, President and
CEO. “ORIX USA is already active in the affordable housing industry
through our investment in RED Capital Group and has established
expertise in underwriting, construction management and asset
management through our Risk Management and Real Estate groups. With
its seasoned management team, Boston Financial is a national leader
in the tax credit industry having raised over $10 billion of
low-income housing and historic tax credit equity investments in
over 2,200 properties. Combining our real estate and affordable
housing expertise and deep capital resources with Boston
Financial’s track record will strengthen Boston Financial’s
position as one of the strongest independent syndicators in the
market.”
“Our two companies complement each other very well,” said Boston
Financial CEO Ken Cutillo. “Our firm and ORIX USA share many of the
same core values of exceptional client service, creativity and
integrity. We also share a commitment to address the housing
affordability issue that exists in so many towns and cities in
America. Our investors and developer partners will greatly benefit
from ORIX USA’s scale, innovative capital solutions and financial
strength. We’re thrilled with the confidence that ORIX USA has
shown in our platform and employees, and are poised for a new
chapter in our company’s history, focused on the growth of our
production effort and product expansion.”
Each company brings unique strengths to the transaction. Among
them are ORIX USA’s expertise in delivering innovative capital
solutions grounded in the financial stability and extensive capital
resources of ORIX Corporation. Boston Financial has a talented
management team and brings a strong track record of successful
investments in the complex business of LIHTC syndication, along
with deep relationships with developers and institutional investors
and an exceptional asset management capability.
The combined companies will also benefit from natural synergies
and growth opportunities including:
- Continuation of Boston Financial’s
best-in-class syndication platform but now with the added financial
strength of being part of the ORIX USA family of companies
- Better access to capital, potentially
enabling developers to begin projects more quickly and possibly
offering better investment opportunities to Boston Financial’s
investors
- Numerous opportunities for ORIX USA
business units—such as RED Capital Group, ORIX Real Estate Americas
and ORIX Municipal and Infrastructure Investments—and Boston
Financial to expand the depth and breadth of their product
offerings, increasing high-quality affordable housing options to
Americans
- ORIX USA, already being a direct
investor in both affordable housing bonds and in LIHTCs, is able to
broaden its investment activity in the affordable housing
industry
Boston Financial will be a new separate subsidiary of ORIX USA
with Cutillo continuing to serve in his current role as CEO.
Cutillo will report to Andrew Garvey, Senior Managing Director and
Head of ORIX USA Municipal and Infrastructure. Garvey will have
overall responsibility for Boston Financial, ensuring it gets all
the growth resources it needs from ORIX USA.
“ORIX USA’s municipal business includes being an active investor
and capital provider in the tax-exempt and taxable affordable
housing bond markets, making the combination of our two companies a
good fit strategically and culturally,” Garvey said. “We share a
common commitment to improving the quality of life for all
Americans, strengthening our local economies by creating jobs,
expanding a community’s tax base and making it easier for employers
to attract and retain workers through investments in affordable
housing.”
Cutillo and the current management team will continue to operate
Boston Financial out of its headquarters in Boston. The acquisition
was completed on July 8, 2016.
For more information, see www.orix.com/bfim.
ORIX USA Corporation
ORIX USA provides innovative capital solutions that clients need
to propel their business to the next level. Based in Dallas, ORIX
USA has a team of more than 600 employees spanning 20 offices
across the U.S. and Brazil. ORIX USA and its family of companies
offer investment capital and asset management services to clients
in the corporate, real estate, municipal and energy sectors, while
holding $6 billion of assets and managing an additional $29
billion, approximately. Its parent company, ORIX Corporation, is a
Tokyo-based, publicly owned international financial services
company with operations in 37 countries and regions worldwide. ORIX
Corporation is listed on the Tokyo (8591) and New York Stock
Exchanges (IX). For more information on ORIX USA, visit
www.orix.com.
About Boston Financial Investment Management
Since 1969, Boston Financial has focused on providing
outstanding client service to its partners and has built one of the
most experienced management teams in the industry. Since its
inception, Boston Financial has raised and managed over $10 billion
of low-income housing and historic tax credit equity investments in
over 2,200 properties, making Boston Financial one of the largest
firms in the tax credit industry.
Cautionary Language Concerning Forward-Looking
Statements
This press release contains, and oral statements made from time
to time by our representatives may contain, forward-looking
statements that are based upon our current expectations and
assumptions concerning future events, which are subject to a number
of risks and uncertainties that could cause actual results to
differ materially from those anticipated. The words "expect,"
"anticipate," "estimate," "forecast," "initiative," "objective,"
"plan," "goal," "project," "outlook," "priorities," "target,"
"intend," "evaluate," "pursue," "commence," "seek," "may," "would,"
"could," "should," "believe," "potential," "continue," or the
negative of any of those words or similar expressions are intended
to identify forward-looking statements. All statements contained in
this press release, other than statements of historical fact,
including, without limitation, statements about the benefits of the
transaction, objectives, expectations and intentions, strategies,
business initiatives, prospects, and the expected development of
the industry in which Boston Financial operates, are
forward-looking statements that involve certain risks and
uncertainties outside of our control.
You should not place undue reliance on the forward-looking
statements contained in this press release. These forward-looking
statements speak only as of the date on which the statements were
made.
We undertake no obligation to update or revise any
forward-looking statements, except where expressly required by
law.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160711006231/en/
for ORIX USAAmanda Gleason,
972-770-5083agleason@marketwave.bizorJeff Smith,
214-237-2301Jeff.smith@orix.com
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