GTCR purchases majority stake in Clear Capital

Private equity firm GTCR announced on Tuesday that it has made a significant investment in national real estate analytics and data solutions company Clear Capital.

As part of the investment, GTCR is partnering with Clear Capital co-founder and CEO Duane Andrews. The transaction represents Clear Capital’s first outside investment, with GTCR becoming the company’s majority shareholder and Andrews retaining substantial equity ownership.

“Partnering with GTCR represents an exciting new chapter for Clear Capital, enabling us to scale our platform, expand product offerings and continue to provide innovative solutions for the real estate and mortgage industries,” Andrews said in a statement.

“Our mission remains the same: to build confidence in real estate decisions to strengthen communities and improve lives. Through this strategic investment, we can build upon this mission even further.”

Clear Capital, based in Reno, Nevada, is a provider of valuation technology, analytics and data solutions for the mortgage and real estate industries. The company is the industry’s leading provider of alternative valuations and technology-powered appraisals, offering a product suite that supports more than 5 million real estate and housing finance transactions each year.

The investment will support the continued growth and integration of Clear Capital’s digital floor plan offering, CubiCasa, which is used in approximately 30% of all new real estate listings nationwide, according to a press release from GTCR.

GTCR’s role includes working closely with Andrews and Clear Capital’s management team to expand the company’s valuation and data offerings, invest in its technology platform and infrastructure, and accelerate M&A activity.

“Clear Capital’s innovative technology platform, combined with its deep expertise delivering data-driven solutions, positions it as a leader in this rapidly evolving market,” said Michael Hollander, managing director at GTCR. “This investment underscores GTCR’s commitment to backing exceptional management teams and leveraging our expertise in technology and financial services to drive transformational growth.”

In addition, technology executive Scott Happ has joined Clear Capital’s board of directors and will serve as an active director and adviser to the company. Happ previously partnered with GTCR during its investment in Optimal Blue, where he served as CEO from 2016 to 2022.

“As the real estate landscape continues to undergo rapid change, Clear Capital stands out for its unique technology-driven platform and proven ability to profitably expand and innovate,” said David Lalo, director at GTCR.

“We look forward to partnering with Duane and the entire Clear Capital team to accelerate the Company’s growth trajectory and continue to deliver exceptional value to its customers. We also plan to pursue strategic acquisitions to further expand Clear Capital’s product set.”

Wells Fargo and Houlihan Lokey advised GTCR, with legal counsel from Simpson Thacher. American Discovery Capital advised Clear Capital, with O’Melveny & Myers serving as legal counsel.