Industry News

Realogy roots run deep with prospective buyer

Private equity firm aided launch of NRT Inc.
Published on Dec 18, 2006

The private equity firm that plans to acquire real estate giant Realogy Corp. also played an integral role in building up its business. NRT Inc., a subsidiary of Realogy Corp. that oversees company-owned brokerage operations, was formed in 1997 through a $232 million venture by a group affiliated with Apollo Management L.P. and by HFS Inc., a predecessor to Realogy's former parent company. HFS reportedly invested $157 million of the initial financing for NRT while Apollo invested $75 million. Realogy this year was spun off from former parent Cendant Corp. as an independent, publicly traded company. "Apollo Management was actually the original private-equity sponsor of NRT -- the vehicle that catapulted NRT into existence in the first place," said Chuck A. DelGrande, managing director of corporate advisory services for Presidio Financial Partners LLC, a financial advisory company. The planned deal between Apollo and Realogy, worth about $9 billion, is still subject to a shareholder vot...

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