Willkie represented Covius and Aquiline in the transaction.
On May 1, New Residential Investment Corp. announced it has entered into agreements to make a strategic investment in Covius Holdings Inc., a leading provider of technology-enabled services to the financial services industry. Covius, which provides settlement and title, document and letter fulfillment, regulatory compliance, quality assurance, commercial and residential loan due diligence and business process automation services, is expanding its services into other mortgage industry products and intends to use the proceeds from the investment to support strategic acquisitions and various other growth initiatives.
Following the investment, New Residential will own a minority stake in Covius, with an option to increase its ownership position through specified future investments. Aquiline Capital Partners, a New York and London-based private equity firm investing in financial services and technology, has been Covius’ majority shareholder since 2014 and will continue to be following the transaction.
New Residential, which is managed by an affiliate of Fortress Investment Group LLC, focuses on opportunistically investing in, and actively managing, investments principally related to residential real estate. New Residential primarily targets investments in mortgage servicing related assets and other related opportunistic investments.
Covius is a provider of services, insight and technology to leading financial companies, intended to deliver operational efficiencies, mitigate risk and empower confident, compliant decisions and borrower interactions. Covius businesses are recognized leaders in quality assurance, regulatory compliance, compliant document services, comprehensive settlement services, lien and title curative solutions, as well as rapid development, customizable cloud-based business process solutions.
Aquiline Capital Partners is a New York and London-based private equity firm investing in businesses across the financial services sector in banking and credit, insurance, investment management, and financial technology and services.
The Willkie team was led by partners Jeffrey Poss and Robert Rizzo and included associates Thomas Sharkey and Michelle Bai.