Feb. 10, 2006, Cleveland – RBC Capital Markets has purchased low-income housing tax credit (LIHTC) syndicator Apollo Housing Capital.
RBC had owned 80% of Apollo since March 2000. It recently bought the remaining 20%, announced officials from both firms.
The senior management team at Apollo, including President and CEO Tom Rini and Chief Operating Officer Jack Griffiths, will continue to operate the business. The purchase price was not disclosed.
“We at Apollo recognized the opportunity to build out a housing platform of financial capital markets products,” Rini said.
The alignment will bring together the tax credit equity capabilities of Apollo with RBC’s debt products. It will also allow for greater geographic coverage. Cleveland-based Apollo has four offices in four states, and RBC Capital Markets has 26 offices in 16 states, according to Bill Jandrisits, RBC managing director.
RBC Capital Markets is the investment banking arm of RBC Financial Group, the global brand name of Royal Bank of Canada. In 2005, it was ranked sixth in the United States in multifamily housing bonds and was the second most active underwriter in the multifamily sector.
Apollo raised roughly $330 million in LIHTC capital in 2005. “In the longer view, we think we can grab a significant market share,” Rini said.
This deal may signal a trend in the LIHTC business. Additional consolidations or reorganizations in the tax credit market are expected, according to experts.