Calidant Capital [1], a Texas-based private investment firm, announced today that it has made an equity capital investment in The Five Star Institute [2], a national trade association which holds conferences, produces publications, and maintains membership organizations for the mortgage industry. Calidant’s partnership with Five Star will enhance the company’s financial strength and increase its breadth of offerings for its customer base, as well as its ability to expand into adjacent and new markets–organically and through acquisition.
“Our partnership with Calidant is an important part of growing the Five Star brand,” Mark Hulme, founder and Chief Creative Officer of Five Star said. “We are excited for this new chapter and the opportunity it will bring to expand our business across various sectors.”
Though financial terms of the transaction were not disclosed, Five Star’s founder, Mark Hulme, and President and CEO, Ed Delgado, will remain with the company indefinitely, and no investment banking firm was involved with the transaction.
“As we focus on the growth of Five Star, we remain committed to providing best-in-class service.” President & CEO Ed Delgado said. “This partnership is the perfect pairing towards supporting our mission.”
Building upon the diverse platform The Five Star Institute represents in the mortgage servicing space, Calidant will actively be seeking add-on investment opportunities within, tangential to, and outside of that segment, and will be working closely with its management team to identify opportunities for organic expansion initiatives toward driving accelerated growth.
In a joint statement, Calidant’s principals Drew Bagot, David Lai, and Court Alley noted, “Five Star’s exemplary management team, critical role in the industry, and focus on a countercyclical business segment made it a compelling opportunity for us to pursue. We see incredible opportunities for growth adjacent to and beyond the mortgage industry. We are very fortunate to be able to call Mark and Ed partners, and are honored to be a part of the bright future ahead for The Five Star Institute.”