HSCM Bermuda, the reinsurance and ILS investment management business arm of Hudson Structured Capital Management Ltd., has committed $150 million in debt financing to real estate focused States Title.
This financing from HSCM Bermuda, which has previously invested in the firm, follows a $123 million Series C filed in May of last year, and will be leveraged to accelerate traction on an aggressive roadmap and market expansion designed to “fundamentally transform the home closing experience”.
Additionally, the company says that it will use some of the proceeds for the refinancing of debt to Lennar Corporation, who helped fund the takeover of North American Title Company and North American Title Insurance Company in 2019.
“Today’s consumers expect processes to be simple, efficient and digital — and home buying, which is already stressful and overwhelming, should set the standard for easing customers’ journeys rather than lagging behind other digital solutions,” said Max Simkoff, Chief Executive Officer (CEO) of States Title.
“At States Title, we’re not just fixing that system, we’re wiping it clean and building a better one from scratch. HSCM Bermuda has been a great partner, having participated in our last equity round prior to this debt financing. They see immense value in how we are overhauling the system and, together, we now have greater capacity to tackle this enormous market, with significant tailwind behind what we’re doing,” he added.
States Title was founded in 2016 and utilises machine intelligence and patented technology solutions to make real estate closing substantially more simple and efficient. As a result, products reduce costs in terms of both time and money, while creating a better experience for the customer.
Interestingly, the company states that its successful acquisition of North American Title Company and North American Title Insurance Company opened up a huge amount of publicly-available closing data. According to States Title, this data has been instrumental to training its machine intelligence platform and has led to the creation of patented technology that has deepened and expanded customers’ reliance on the company.
In fact, States Title claims that its one solution removes huge amounts of the closing process and something which used to take more than 40 days can now be done in as little as six.
Vikas Singhal, a Partner at HSCM Bermuda, commented: “We are thrilled to be growing our relationship with States Title as they become an increasingly integral part of the mortgage ecosystem.
“We first met them in 2016 when they were still a start-up in an old San Francisco warehouse. It is so exciting to see them grow into such a structurally important part of the real estate industry and we are excited to back them again on this next phase of growth.”
