Industry News

Realogy roots run deep with prospective buyer

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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...