Walker & Dunlop, Inc. announced today that it has entered into a definitive agreement to acquire Alliant Capital, Ltd. and its affiliates, Alliant Strategic Investments and ADC Communities, a privately held alternative investment manager focused on the affordable housing sector through low-income housing tax credit syndication, joint venture development, and community preservation fund management. Alliant is the 6th largest LIHTC syndicator in the United States, and since inception, has participated in the development of over 100,000 affordable units serving over 400,000 families.
The acquisition of Alliant brings the following strategic benefits to Walker & Dunlop:
- Market-leading affordable housing platform
- Alliant’s scaled affordable housing portfolio, in combination with Walker & Dunlop’s leadership position in the affordable debt financing space to generate significant financing and sales opportunities for Walker & Dunlop
- Tax credit syndication to expand Walker & Dunlop’s capital solutions offering to the affordable housing industry
- Alliant’s $14 billion of affordable assets under management to be added to Walker & Dunlop’s $2 billion of assets under management, far surpassing the company’s Drive to ’25 goal of $10 billion
- Significant asset management fees, in combination with servicing fees already generated by Walker & Dunlop’s $112 billion servicing portfolio, to increase long-term, predictable, and stable cash flows
- Immediate accretion to key financial metrics, including estimated increases in 2022 total revenues of $90 to $100 million, diluted EPS of $0.45 to $0.60, and adjusted EBITDA1 of approximately $60 million
Walker & Dunlop Chairman and CEO Willy Walker stated, “Alliant is one of the largest and most respected tax credit syndicators and affordable housing developers in the country. The addition of their people, assets, and capital formation capabilities immediately makes Walker & Dunlop a market leader in affordable housing — lending, sales, and tax credit syndication. With Fannie Mae, Freddie Mac and HUD all focused on affordable housing and more and more Americans seeking affordable rental housing, the combination of Alliant and Walker & Dunlop is a home run. Shawn Horwitz has built an incredible team and company, and we look forward to welcoming them to W&D.”
Mr. Walker continued, “Alliant will have an immediate impact on Walker & Dunlop’s revenues, adjusted EBITDA, and cash flow. This acquisition dramatically accelerates the achievement of three Drive to ’25 goals: revenue growth to $2 billion, assets under management to over $10 billion, and $60 billion of targeted affordable housing lending. To accomplish so much in one acquisition is a true game-changer for W&D.”
Alliant Founder and CEO Shawn Horwitz commented, “Combining with Walker & Dunlop’s scaled lending and sales platform will accelerate Alliant’s growth over the coming years. Walker & Dunlop’s people, brand, and innovative technology will benefit our clients, partners, and investors, and allow us to provide more affordable housing, something that is desperately needed in America.”
Financial Details
Under the terms of the purchase agreement, Walker & Dunlop will acquire Alliant at a total enterprise value of $696 million, comprised of:
- $351 million of cash and assumption of Alliant’s securitized debt facility, which had an outstanding balance of $155 million at July 31, 2021, is rated A2 by Moody’s and carries a 4.75% interest rate
- $90 million of WD common stock, with the number of shares to be determined at closing
- $100 million of earn-out structured as participating interest in future cash flows over the next four years
About Walker & Dunlop
Walker & Dunlop (NYSE: WD) is the largest provider of capital to the multifamily industry in the United States and the fourth largest lender on all commercial real estate including industrial, office, retail, and hospitality. Walker & Dunlop enables real estate owners and operators to bring their visions of communities — where Americans live, work, shop, and play — to life. The power of our people, premier brand, and industry-leading technology enables us to meet any client need – including financing, research, property sales, valuation, and advisory services. With over 1,000 employees across every major U.S. market, Walker & Dunlop has consistently been named one of Fortune’s Great Places to Work® and is committed to making the commercial real estate industry more inclusive and diverse while creating meaningful social, environmental, and economic change in our communities.
About Alliant
Alliant Capital, Ltd. is a leading investment management firm focused on providing tax credit syndication for the development and financing of affordable multifamily rental housing throughout the United States. Founded in 1997 to assist in America’s critical need for affordable housing, today Alliant is among the nation’s top syndicators and has an unparalleled track record of success.
