Neighbourhood Holdings Acquires Fisgard Asset Management in Landmark Deal

Strategic Insights -

Neighbourhood Holdings, a Canadian alternative mortgage lender, has made a significant move in the country's alternative mortgage industry with the acquisition of Fisgard Asset Management Corporation. This transaction brings together two of Canada's most respected alternative mortgage lenders, creating one of the country's largest mortgage investment entities. The combined business will have over $750 million in assets under management, serving brokers and borrowers from coast to coast.

The acquisition marks a major milestone in the industry and highlights the growing importance of alternative lenders in Canadian housing finance. As traditional banks tighten lending standards, alternative lenders like Neighbourhood and Fisgard are playing a growing role in providing mortgage solutions to borrowers. The combined company will unlock competitive rates and flexible solutions, expanding its reach to nearly 5,000 mortgage brokers the two firms have collectively worked with in recent years.

Key Takeaways:

  • The acquisition creates one of Canada's largest mortgage investment entities, with over $750 million in assets under management across 1,550 mortgages.
  • The combined company has 60+ employees and serves over 3,000 investors, making it one of the largest mortgage lenders in the country.
  • The acquisition brings together two strong, well-capitalized companies in their prime, with disciplined underwriting standards, prudent risk management, and a culture centered on integrity and investor support.
  • The combined business will unlock competitive rates and flexible solutions for nearly 5,000 mortgage brokers.
  • Neighbourhood and Fisgard have a shared vision for the future, with a focus on innovation, transparency, and responsible lending practices.
  • The acquisition honors the legacy of the Strandlund family, who have made historic contributions to the Canadian mortgage industry through decades of leadership and responsible lending.
  • The combined group will maintain two distinct investment vehicles: Neighbourhood Holdings Income Trust I (NHIT) and Fisgard Capital Corporation (FCC).
  • Neighbourhood Group's exempt market dealer will be renamed Fisgard Capital Management Ltd. (FCM), supporting nearly 2,500 direct investors.
  • The combined company has grown its AUM at an annualized rate of 28% since its inception in 2015, funding over $2 billion in residential mortgages nationwide.
  • Neighbourhood has consistently embraced technological innovation, leveraging technology to deliver better outcomes for borrowers and investors.

Statistics:

  • $750 million: Total assets under management of the combined company
  • 1,550: Number of mortgages under management
  • 60+: Number of employees
  • 3,000: Number of investors served
  • 5,000: Number of mortgage brokers collectively worked with by Neighbourhood and Fisgard
  • 28%: Annualized growth rate of Neighbourhood's AUM since inception in 2015
  • $2 billion: Total amount funded in residential mortgages nationwide by Neighbourhood
  • $5 billion: Total amount funded in mortgages by Neighbourhood and Fisgard combined

Sources:

  • Neighbourhood Holdings
  • Fisgard Asset Management Corporation
  • ACCESS Newswire (press release)