Clayton Services, Inc. and The Murrayhill Company to Combine; Frank Filipps To Be Named CEO
SHELTON, Conn. and DENVER, April 13, 2005 – Clayton Services, Inc., the largest and most respected provider of integrated loan and portfolio analysis, operations support and consulting services to the primary, capital and investor markets, and The Murrayhill Company, founder and industry leader of the securities surveillance and credit risk management business, have united under a newly formed company, Clayton Holdings, Inc. Frank P. Filipps, Chairman and CEO of Radian Group Inc., will be named Chairman and CEO upon his retirement from Radian. TA Associates, a leading private equity firm, is the controlling shareholder of both Clayton Services, Inc. and The Murrayhill Company and has invested $134 million of capital into Clayton Holdings.
The new organization will leverage each company’s technology, robust databases, and analytical and consulting capabilities to provide a comprehensive spectrum of information-based services. These services support loan origination, securities issuance and securities performance management for the non-conforming mortgage backed securities (MBS), commercial mortgage backed securities (CMBS) and asset backed securities (ABS) markets, which represent combined principal value in excess of $1.6 trillion. The company will capitalize on the continued robust performance of non-prime lending and the growing trend toward services outsourcing by U.S. capital markets firms.
“Clayton Holdings is a uniquely qualified, full-service company with the financial, intellectual and technology resources to significantly advance the non-conforming lending and securities industries,” said Filipps. “As we strategically grow the company, we will be doing so from an exceptional foundation that adds value to both our clients and the industries we serve.”
At Radian, Mr. Filipps expanded and diversified operations in the US, UK and Asia, including significant acquisitions in financial guarantee insurance and credit-based financial services, propelling the company from revenues of $165 million to more than $1.3 billion and net income of $28 million to over $518 million.
Joining Mr. Filipps is Steve Lamando, founder and CEO of Clayton Services, who has been named president of Clayton Holdings and joins its board of directors. As president of Clayton Holdings, Mr. Lamando will oversee all businesses of the combined companies and will work with Mr. Filipps to grow the franchise. Sue Ellis, CEO and founder of Murrayhill, will move from her post as CEO of Murrayhill to join the Clayton Holdings board of directors and Kevin Kanouff will continue as president of Murrayhill.
Clayton Services has supported over 30,000 transactions totaling more than $1.5 trillion in principal value and performs analysis on more than one million loans annually. The Murrayhill Company has been retained by every major private-label dealer to monitor structured finance assets and has overseen more than $800 billion in assets.
“Delivering trusted, high quality services are the hallmarks of both businesses and the basis upon which each has built established relationships with leading capital market firms, banks, lending institutions, fixed income investors, servicers, trustees and rating agencies,” said Lamando. “We look forward to bringing both our clients and the industry an even richer complement of information-based services to advance their businesses.”
Clayton Holdings will offer access to the industry’s largest and most robust database of non-conforming loan information, sophisticated data aggregation, comprehensive operations outsourcing capabilities, advanced analytics and dynamic reporting capabilities. In addition, it will provide new capabilities to help clients achieve continuous improvement in securities creation and performance management, such as services that track loan characteristics and performance from origination through maturity.
“Uniting under a common banner brings us closer to our goal of seamless delivery of every aspect of transaction oversight, from pre-securitization through the life of a loan pool, for the fixed income industry,” said Ellis. “We see value-added synergy and a close cultural fit with Clayton, and feel that this combination will benefit our customers, the industry and our employees.”
Privately-held Clayton Holdings is controlled by TA Associates, a $6 billion private equity firm providing growth capital, leveraged recapitalization and management buyout financing for companies in such industries as technology, financial services and business services. Roger Kafker, a Managing Director of TA Associates, and Todd Crockett, a Principal of TA Associates, will both join the board of Clayton Holdings. Clayton Services founder Lamando and Murrayhill founder Ellis retain significant ownership interest.
“The non-conforming mortgage market is ripe for a company to become the industry leading consolidator delivering high quality information on which many financial services firms rely,” said Crockett. “The combination of dominant players like Clayton and Murrayhill, with their world class management teams, forms a platform to build an innovative product leader.”
Clayton Holdings will be headquartered in Shelton, Connecticut, with major bases of operation in Denver; Tulsa, Oklahoma; Tampa, Florida; Irving, Texas; and Irvine, California.
About Clayton Holdings, Inc.
Clayton Holdings was established to bring the most comprehensive set of sophisticated information-based solutions to clients who buy, sell and manage loans and securities. Comprised of two wholly owned subsidiaries, Clayton Services, Inc. and The Murrayhill Company, Clayton Holdings is privately held, with controlling interest by TA Associates, one of the largest and most experienced private equity and buyout firms. Clayton Services founder Steve Lamando and Murrayhill founder Sue Ellis retain significant ownership interest.
About Clayton Services
Clayton Services, Inc. is the industry’s largest and most respected provider of operations support, loan and portfolio analysis, and consulting services to companies that buy, sell and manage loans. Founded in 1989, Clayton pioneered the use of automation and decision support technologies to create dramatic efficiencies in transaction management support and has continued to innovate in support of its clients needs. Clayton’s clients include leading capital markets firms, banks and lending institutions, fixed income investors, rating agencies and insurance companies. The company has supported over 30,000 transactions totaling over $1.5 trillion in principal value, performs analysis on over 1 million loans annually, and provides an integrated suite of solutions ranging from Transaction Management support to Compliance software to Advisory Services. For more information, visit www.clayton.com.
About The Murrayhill Company
The Murrayhill Company created credit risk management to improve the performance of fixed-income securities. Murrayhill’s services provide clients, security issuers and investors, with a competitive advantage through servicer oversight and transparent reporting on MBS and ABS securities. Using a patent-pending risk-filtering process, Murrayhill analyzes raw data to identify situations that present risk to the investor. Murrayhill’s analysts take action to remove and diminish this risk, resolving both loan-level and systemic issues. Based in Denver, Colorado, The Murrayhill Company monitors more than $800 billion (original balance) in securitized bond portfolios. For more information, visit www.murrayhillcompany.com.
TA Associates
Founded in 1968, TA Associates is one of the largest and most experienced private equity firms. With offices in Boston, Menlo Park and London, the firm manages $6 billion in capital and has invested in 350 companies. TA Associates provides growth equity capital, leveraged recapitalization and management buyout financing primarily for technology, financial and business services, healthcare and consumer businesses. TA has completed investments in financial services companies totaling well over $1 billion in transaction value, including Affiliated Managers Group, AIM Management Group (now AMVESCAP Plc), Datek Online Holdings (Ameritrade Holding Corporation), GlobeOp Financial Services and The Island ECN (Instinet Group Incorporated). More information about TA Associates can be found at www.ta.com.
Safe harbor statement under the U.S. Private Securities Litigation Reform Act of 1995: Statements made in connection with this release which are not historical fact, such as forward-looking statements concerning future financial performance and growth, involve risk and uncertainties. Such statements are subject to various factors that could cause actual results to differ materially from those set forth in the forward-looking statements. Any forward-looking statements represent the best judgment of Clayton Holdings, Clayton Services, The Murrayhill Company and/or TA Associates as of the date of this release. Clayton Holdings, Clayton Services, The Murrayhill Company and/or TA Associates each disclaim any intent or obligation to update any forward-looking statements. |
