Centerbridge Acquires Majority Stake in Realogy's Title Insurance Underwriter as Part of Strategic Joint Venture

October 12, 2021

Willkie represented Centerbridge in the transaction.

Realogy Holdings Corp. (NYSE: RLGY), a leading provider of U.S. residential real estate services, announced a strategic agreement to form a Title Insurance Underwriter joint venture with an investment from funds affiliated with Centerbridge Partners, L.P., a private investment management firm. As part of the strategic agreement, Centerbridge funds will purchase a controlling 70% interest in Title Resources Guaranty Company, Realogy's insurance underwriter, for $210 million in cash, subject to closing adjustments, valuing the asset at $300 million. Realogy will maintain a 30% equity interest in Closing Parent Holdco, L.P., a newly formed limited partnership joint venture that will own the title insurance underwriter.

The JV partnership is expected to enable Realogy to further invest in integration of core real estate transaction services across franchise, brokerage, title settlement and escrow, and mortgage. Realogy will continue to maintain its existing ownership of Realogy Title Group, which includes the company's national title and settlement services and mortgage origination joint venture.

Realogy is a leading provider of U.S. residential real estate services encompassing franchise, brokerage, relocation, and title and settlement businesses as well as a mortgage joint venture, and supported approximately 1.4 million home transactions in 2020.

Founded in 2005, Centerbridge Partners is a private investment management firm employing a flexible approach across investment disciplines — private equity, private credit and real estate – with approximately $32 billion in capital under management.

The Willkie team was led by partners Rosalind Kruse and Howard Block and included associates Tej Prakash and David Araoz.