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Pretium, Ares Take Front Yard SFR Platform Private for $2.4B
A partnership of Pretium and a group of its investors and funds managed by Ares Management Corporation will acquire single-family rental provider Front Yard Residential Corporation. The all-cash privatization values Front Yard at $2.4 billion and will make Pretium the nation’s second-largest SFR owner and operator.
New York City-based Pretium led the transaction and will manage the venture following closing.
“This transaction further establishes Pretium as both a pioneer and a leader in the SFR space since 2012, having completed the industry’s largest strategic recapitalization in 2019 and now leading the industry’s first public-to-private transaction,” said Pretium CEO Don Mullen.
RBC Capital Markets is serving as Pretium’s financial advisor.. BofA Securities is advising Ares.
Sidley Austin is serving as M&A legal counsel, Fried Frank as partnership legal counsel, and Hunton Andrews Kurth as special tax and financing counsel to Pretium. Latham & Watkins is serving as legal counsel to Ares.
Photo courtesy of Front Yard Residential.
For comments, questions or concerns, please contact Paul Bubny
- ◦Sale/Acquisition
