MIAMI, Dec. 3, 2018 /PRNewswire/ -- Lennar Corporation
(NYSE: LEN and LEN.B) reported that, on November 30, 2018, it completed the
previously announced sale of its Rialto Investment and Asset
Management business to investment funds managed by Stone Point
Capital for $340 million.
Diane Bessette, Chief Financial
Officer of Lennar, said, "We are very pleased to announce the
successful execution of this transaction, which is a significant
component of our strategy of reverting to our pure-play core
homebuilding platform. The closing of this deal generates
substantial cash flow, which aligns with our previously stated
capital and capital allocation strategy."
"We would like to thank the Rialto associates for their
dedicated years of service and wish them continued success in their
future endeavors."
As previously announced, Lennar is retaining its Rialto Mortgage
Finance business, which Lennar is moving into its Financial
Services business, and it is retaining its fund investments
($294 million at August 31, 2018) along with its carried interests
in various Rialto funds and investments in other Rialto balance
sheet assets.
Deutsche Bank Securities Inc. and Wells Fargo Securities, LLC
served as financial advisors for Lennar and Goodwin Procter LLP
acted as Lennar's legal counsel. Kramer Levin Naftalis and Frankel LLP acted as
Stone Point's legal counsel.
About Lennar
Lennar Corporation, founded in 1954, is
one of the nation's leading builders of quality homes for all
generations. Lennar builds affordable, move-up and active
adult homes primarily under the Lennar brand name. Lennar's
Financial Services segment provides mortgage financing, title
insurance and closing services for both buyers of Lennar's homes
and others. Lennar's Multifamily segment is a nationwide
developer of high-quality multifamily rental properties.
Previous press releases and further information about Lennar can be
obtained at the "Investor Relations" section of Lennar's website,
www.lennar.com.
About Stone Point
Stone
Point Capital LLC is a financial services-focused private equity
firm based in Greenwich, CT. The firm has raised and managed
seven private equity funds – the Trident Funds – with aggregate
committed capital of approximately $19
billion. For further information about Stone Point, see www.stonepoint.com.
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SOURCE Lennar Corporation