Ten-X is the leading online marketplace for residential and commercial real estate.
Ten-X is a business process outsourcing company that is the nation’s leading online real estate marketplace and the parent to Auction.com and Ten-X Commercial. The company has sold more than 430,000 residential and commercial properties.
Stone Point played a key role in sourcing and structuring joint ventures for Ten-X with key players in the commercial real estate space, in order to support Ten-X’s expansion into new lines of business.
Stone Point has made significant introductions for Ten-X, including to several of Ten-X’s largest clients, many of which are market leaders and have exclusive relationships with Ten-X. Additionally Stone Point has helped Ten-X establish relationships with various investment banks.
Stone Point helped Ten-X source and execute its acquisition of the retail assets of Commerce Title, as well as helped execute the sale of the company’s non-strategic REO asset management business to a third-party. Additionally, we helped negotiate the acquisition of Rockwood Advisors, and continue to actively explore transactions alongside Ten-X management. At various points in Ten-X’s growth, we have helped bring in additional capital providers and partners, including Google Capital, Starwood, and Fortress.
Stone Point has supported Ten-X’s shift from an offline model at the time of initial partnership, to an online model that has become the nation’s leading online real estate marketplace. Throughout its lifecycle, we have supported Ten-X with its expansion into (i) online auctions, (ii) deed-in-lieu of foreclosure sales, (iii) trustee sales, (iv) short sales, (v) commercial real estate and loan note auctions, and (vi) residential and commercial consumer to consumer (C2C) auctions. In 2017, Ten-X entered into a joint venture with Fizber to build out an online marketplace for single family homes using Ten-X’s software capabilities.
Stone Point assisted Ten-X with the recruiting of several senior executives, including the president of default solutions, the EVP of the commercial division, EVP of residential loan sales, and COO of online operations. We have supported the company with several restructurings of its employee incentive program in order to attract and retain top talent.
Stone Point has been instrumental in helping Ten-X negotiate, raise, and place several rounds of debt. Additionally, we have helped Ten-X seed and fundraise for its specialty lending vehicle.
Stone Point assisted management with an initial expense restructuring, which resulted in $8 million of run-rate expense saves, and subsequently with the purchase of the Auction.com domain name. Stone Point principals provide ongoing strategic advice to the company as active members of the Board.
What a wonderful ride it has been! Since our partnership began in 2008, Stone Point has under-promised and over-performed. Always willing to provide help and guidance, from market strategy to CEO mentorship. We could not have achieved the exit value we did without Stone Point as our partner. Grateful to consider the team at Stone Point as not only partners, but friends for life.
Investments highlighted or discussed in this selection have been selected to illustrate SPC’s investment approach and/or market outlook and are not intended to be an indicator of past or future performance. Each investment discussed in this selection has been selected solely for this purpose and has not been selected on the basis of performance or any performance-related criteria. The investments discussed herein do not represent an entire portfolio and in the aggregate may only represent a small percentage of holdings. Nothing in this presentation shall constitute a recommendation or endorsement to buy or sell any security or other financial instrument referenced herein.