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Street Capital Closes With Counsel

Street-CapitalCounsel Corporation has completed its $33 million purchase of Street Capital that it announced March 9.

Street’s President, Paul Grewal, says the deal brings numerous benefits due to Counsel’s considerable financial services expertise and access to capital.

Paul-Grewal-Street-CapitalThe counsel merger “will open up more opportunities to diversify our products,” he says. “We have [multiple] products and services we’re working on right now.”

As part of Street’s “overall roadmap” it also plans to become a direct issuer into the Canada Mortgage Bond (CMB) program. CMB issuer status allows for wider margins on securitized mortgages—the bulk of Street’s business. That could help it achieve even better mortgage pricing and/or profitability.

Street Capital posted a $10.2 million profit in its most recent fiscal year and is the 6th biggest lender in the broker channel.

Counsel Corporation is an equity investment firm that trades on the TSX—Symbol: CXS.

Here is the deal’s press release.

Rob McLister, CMT