Fairstone Bank and Home Trust merge to create leading Canadian alternative lender

Company

Centerbridge Partners, L.P.

Law Firm / Organization
Willkie Farr & Gallagher LLP

Company

Ontario Teachers' Pension Plan Board

Law Firm / Organization
Stikeman Elliott LLP
Law Firm / Organization
Ontario Teachers’ Pension Plan
Lawyer(s)

Jeff Davis

On March 26, 2024, Fairstone Bank of Canada and Home Trust Company announced their merger, forming a leading alternative lender in Canada. This combined entity will serve over 2 million customers with more than 250 branches, offering a range of financial products like mortgages, personal loans, and digital lending. The merger aims to enhance financial services access for Canadians, especially non-prime consumers, leveraging both companies' strengths and national networks. Stephen Smith of Smith Financial Corporation praised the strategic fit and potential benefits for customers. The merged company will focus on inclusive financial solutions, capitalizing on growth opportunities and addressing the needs of underserved market segments. Regulatory approvals are pending, with Smith Financial to hold a majority stake post-transaction.

Merger & Acquisition
Banking/Finance
Undisclosed/Confidential
Active