DLC becomes majority owner of Founders Advantage Capital

Dominion Lending Centres has bought back the piece of itself that it sold in 2016, and in the process has taken control of Founders Advantage Capital Corp.

Founders Advantage Capital announced that it has entered a letter of intent to acquire the remaining 40% interest in DLC, but the latter’s Co-Founder and President Gary Mauris will assume the role of president and CEO of Founders.  Additionally, DLC Co-Founder Chris Kayat will become Executive Vice-Chairman of the Corporation.

“It’s not really a sale,” said Mauris. “What we’re doing is rolling in our equity of Dominion into Founders Advantage Capital, which makes us the largest shareholder of Founders Advantage Capital. We now own 57% of that publicly traded company, and that includes Dominion Lending Centres Group of Companies and the other assets of Founders.

“We had 40% of Dominion Lending Centres, but now we own 57% of it, and we also own 57% of the public company.”

In taking a much larger equity position in Founders Advantage Capital, DLC has strategically positioned itself to continue its dominion of the broker channel. Further to that goal, the network giant is going on a bench strength hiring spree, which includes bringing aboard Rich Spence, who spent years as the vice president of Manulife’s insurance division.

“It means that we are purely focused and engaged in growth within the Canadian mortgage community. We’ve always grown, but our target going forward is to continue that growth,” said Mauris. “We’re stepping back in with a substantial commitment around our investment in technology as part of this transaction. We have just recently hired a new very highly regarded chief of technology by the name of Serge Vinokour.

“We’re much stronger now because now we have a publicly traded company that gives us the ability to easily raise equity for more acquisitions. We’re building technology around lead generation, clever credit, which is a new technology that is just days away from launching, and our technology is focused around mobile applications.”

In a statement, J.R. Kingsley Ward, Chairman of the Corporation, said:

“The proposed acquisition of 100% of DLC is transformational for FA Capital. The Proposed Transaction gives FA Capital full ownership of a premium Canadian franchise system with number one market share and repositions the Corporation in the public market as a financial services operating entity with an experienced management team. The Proposed Transaction adds financial strength and stability and allows for a reduction of corporate costs and leverage. As the DLC Principals have successfully operated a growing and resilient mortgage brokerage business for over 14 years, we are confident they will bring the same experience, work ethic and corporate discipline to FA Capital. We sincerely appreciate Gary and Chris allowing all shareholders to participate fully in DLC’s future.”