Novacap financial services fund has entered a partnership with the Ratehub platform. The transaction was announced in the early morning hours of July 14.
Marcel Larochelle, the managing partner of Novacap, told Insurance Portal that the fund is becoming the majority shareholder of the company. “The founders and the rest of the management team will retain a large proportion of the shares,” he confirms in an email.
The Ratehub.ca platform, founded by Alyssa Furtado and James Laird in 2010, aims to promote consumer education, financial transparency and online shopping for financial products.
The company operates the Moneysense.ca educational platform. Together, the sites attract over 19 million users annually.
Growth objectives
“With the Novacap team on board, we can build on our momentum and accelerate our growth, both organically and through acquisitions,” says Ratehub.ca Co-CEO James Laird.
“I am excited about the potential this new partnership opens up for our employees and customers,” says Ratehub.ca Co-CEO Alyssa Furtado, adding that “this partnership is an important step for Ratehub.ca and the next step solidifying Ratehub.ca's position in the financial technology industry.”
“'When Alyssa and James launched Ratehub.ca, they identified an underserved market, pioneered a new business model and created an impressive brand,” Marcel Larochelle says.
“We are a natural fit, sharing the same entrepreneurial spirit and passion for implementing innovative solutions,” he adds.
“We look forward to working with the management team to expand the reach and customer base of Ratehub.ca,” says Rajiv Bahl, senior partner at Novacap. He mentions that the platform is well positioned to continue helping households through the mortgage renewal process, and with new home purchases, following the Bank of Canada’s recent rate hikes.
In addition to the mortgage brokerage service, Ratehub lets users compare credit cards, banking and investment offers, etc.
To carry out the transaction, Ratehub enlisted Evercore as a financial advisor and Osler, Hoskin & Harcourt LLP as legal advisor. Novacap obtained legal counsel from McCarthy Tétrault LLP.
Last year, Ratehub.ca launched its own personal lines brokerage for the Ontario market.
Novacap continues to invest in the financial services market. It is the principal partner in AGA Group Insurance and Groupassur, which has paved the way for acquisitions in Ontario.
