Novacap completes investment in Canada’s largest online marketplace for financial services Ratehub.ca
MONTREAL, July 14th, 2022 – Novacap, a leading North American private equity firm, announced today that it has entered a partnership with Ratehub.ca, a Toronto-based online financial marketplace that provides Canadians with price comparisons on financial products like mortgages, credit cards, insurance products and more. Ratehub.ca also offers Canadians access to in-house mortgage, auto insurance and home insurance brokers. This transaction marks the fifth platform acquisition of Novacap’s first financial services fund.
Founded in 2010 by Alyssa Furtado and James Laird, Ratehub.ca is Canada’s leading platform for consumer education, financial transparency and online shopping for financial products. Ratehub.ca’s educational platform, Moneysense.ca, is Canada’s leading resource for financial education content. Together, the two platforms attract more than 19 million users per year.
“Ratehub.ca’s aim is to provide users with a transparent and frictionless shopping process, matching individual customer needs with the most suitable products and service providers. With the Novacap team on board, we can build on our momentum and accelerate our growth, both organically and through acquisitions,” said, James Laird Co-Chief Executive Officer of Ratehub.ca.
“I am excited about the potential this new partnership opens up for our employees and customers. Our commitment is to provide the best decision-making tools and products to help users make better financial decisions. This partnership is an important step for Ratehub.ca and the next step solidifying Ratehub.ca’s position in the financial technology industry.” said Alyssa Furtado, Co-Chief Executive Officer of Ratehub.ca.
‘’When Alyssa and James launched Ratehub.ca, they identified an underserved market, pioneered a new business model and created an impressive brand. Today, Ratehub.ca is helping millions of Canadians achieve their financial goals, paving the way for home ownership and other important projects by providing access to credit and financial solutions in a simple, cost-effective and user-friendly manner,’’ said Marcel Larochelle, Managing Partner of Novacap. ‘’ We are a natural fit, sharing the same entrepreneurial spirit and passion for implementing innovative solutions.”
“In light of increasing mortgage rates, following the Bank of Canada’s recent rate hikes, Ratehub.ca is well positioned to continue helping households through the renewal process, as well as with new home purchases” said Rajiv Bahl, Senior Partner at Novacap. “We look forward to working with the management team to expand the reach and customer base of Ratehub.ca. “
Evercore acted as financial advisor, and Osler, Hoskin & Harcourt LLP acted as legal advisor to Ratehub.ca
McCarthy Tétrault LLP acted as legal counsel to Novacap.