RentPath has announced that Providence Equity Partners, a leading global private equity firm focused on media, communications, education and information companies, has agreed to purchase a stake in the Company from existing owner TPG, a leading global private investment firm.
RentPath has a long-standing heritage in the real estate industry of empowering millions of people nationwide to find apartments and houses for rent. RentPath’s category-leading brands include Apartment Guide, Rent.com, Rentals.com, RentalHouses.com, LiveLovely.com, and New Home Guide. All total, its network of websites reaches over 7 million unduplicated unique visitors monthly.
Under the terms of the agreement, Providence and TPG will own equal shares of RentPath, with management continuing to also have a stake in the company. No other deal terms were disclosed. The transaction is expected to close by the end of the year.
“We are thrilled to have Providence join TPG in owning RentPath, and extremely gratified by the vote of confidence in our business reflected by their investments,” said Charles Stubbs, CEO of RentPath. “Having two of the preeminent private equity companies investing in and guiding our growth will help us drive even greater value to our consumers and advertisers.”
“RentPath is an exceptional company with a strong leadership position in the online rental property marketplace,” said Michael Dominguez, a Managing Director at Providence. “We are excited by the opportunity to back RentPath’s talented management team and help support the many growth opportunities they are pursuing. The business has a similar marketplace model to AutoTrader Group, another successful Atlanta-based online company that we helped to grow and succeed. We look forward to partnering with Charles and the team at TPG to add lasting value to the company.”
“Working with management, we have transformed RentPath during the short time we have owned it, but also remain excited about the prospects for continued growth in partnership with Providence,” said David Trujillo, partner, TPG. “This transaction allows us to return significant value to our partners, while retaining a meaningful and equal ownership position in this vibrant enterprise.”
TPG first invested in RentPath in July 2011. Under TPG’s stewardship, RentPath has transitioned from a largely print-based rental resource to a pure digital media company. During this time, RentPath acquired former eBay subsidiary Rent.com, as well as Lovely, the first mobile-powered end-to-end rental marketplace.
Moelis & Company served as lead financial advisor with support from BofA Merrill Lynch, and Cleary Gottlieb Steen & Hamilton LLP served as legal counsel to RentPath. Weil, Gotshal & Manges LLP served as legal counsel to Providence.