Fortitude Group Inc. (Symbol FRTD) CEO Thomas J. Parilla announced an agreement to purchase a minority interest in PRIMARQ Inc., a private capital market system whose vision it is to provide an improved model for housing finance that delivers measurable benefits to homebuyers, homeowners, investors and the economy at large. Under the terms of the agreement, Fortitude Group Inc. will acquire a 15% ownership position in PRIMARQ with an option to acquire a total of 30%.
“This deal is a true game changer for the Fortitude Group and its shareholders as we evolve our value creation thesis,” said Thomas J. Parilla, CEO of Fortitude Group Inc. “PRIMARQ has developed a technology-enabled model that is highly unique and extremely well-timed. We have seen the application of technology in capital formation with the advent and expansion of crowdfunding and private markets, and see that PRIMARQ will take this to a new level. The Company is led by an exceptionally strong and visionary team and will capitalize on the opportunity to impact a large share of the real estate finance market. We are thrilled to gain ownership in a truly cutting edge, innovative company like PRIMARQ. Fortitude Group Inc. remains steadfast in building intrinsic value for its shareholders and this investment is a major step towards meeting that goal.”
San Francisco-based PRIMARQ is creating the first market for investing in, and trading of, equity in residential real estate. It will unite homebuyers and homeowners with investors in a mutually beneficial way that delivers less debt-reliant, more affordable homeownership to Americans as well as providing investor access to an attractive asset class. PRIMARQ is deeply committed to evolving the methodology by which homes are financed and has crafted a solution with the breadth and sophistication needed to shift the 80-year-old mortgage debt paradigm.
“Fortitude’s investment in PRIMARQ will further accelerate our primary goals of making sustainable homeownership possible for millions of American families, enabling wealth creation and improved affordability, and providing passive access to a compelling asset class and best market practices for private sector investors. The excesses of debt financing have negatively impacted homebuyers, homeowners, lenders and government agencies, adding systemic risk, affecting both affordability and the health of the broader economy. It is time for a change,” stated a company spokesperson.