Serent Capital just acquired Mercury Network, a leading San Francisco-based private equity firm that invests in high growth, profitable businesses.
Prior to the acquisition, Mercury Network was a subsidiary of a la mode, inc., a technology leader in the financial services industry.
Mercury Network is a valuation vendor management platform for the mortgage lending industry.
Mercury Network’s SaaS platform is used by mortgage lenders and appraisal management companies to manage compliance and workflow for more than 20,000 appraisal transactions a day.
“Our work so far, combined with our new partnership with Serent Capital, positions us to be the premier player in the vendor management and collateral risk market”, said Jennifer Miller, president of Mercury Network. “As we build upon our award-winning product design and strategic partnerships, we’ll continue to expand our set of SaaS solutions and provide even better compliance, reporting and business intelligence for our 600+ clients.”
Mercury Network has seen a 375% customer growth trajectory over the past four years with a 93% retention rate.
The company’s services include: Mercury Network for appraisal vendor management; Enterprise Vendor Framework for lender management of multiple AMCs; AQM for quality assurance and compliance; Mercury Mobile for efficient vendor communications; DataCourier for compliant appraisal receipt and delivery; and SureReceipts for compliant delivery of eDisclosures to borrowers.
Dave Biggers, founder and chairman of a la mode, was as enthusiastic about the transaction as Miller.
“We conceived, built, incubated, and eventually spun off Mercury Network entirely inside a la mode, with one clear purpose – to protect appraisers from the income-robbing effects of the HVCC and its aftermath, by providing lenders with a compelling alternative to the draconian and ultimately ineffective vendor management models in vogue at the time,” Biggers said. “We’re very excited about their future, and of course ours as well, as we’re now able to deploy new resources and focus even more specifically on the appraiser’s side of the lending transaction.”
Serent Capital plans to bring additional resources to support technology innovations for clients and partners.
“Mercury Network’s success and impressive track record of growth is the result of the work of the team, which is among the finest we have met in the mortgage technology industry. We look forward to working with them to expand their services and help deliver unmatched value to customers”, said Lance Fenton, partner at Serent Capital.
Serent has multiple software and solutions firms both in and out of the real estate space.
Serent owns Optimal Blue, which provides managed-content, enterprise lending services that help mortgage banks, community banks and credit unions navigate the complex mortgage process from capital markets, to point-of-sale, and back.