First National (FN), one of Canada’s largest non-bank mortgage lenders, is getting taken out in a $2.9B deal led by Birch Hill Equity Partners and Brookfield after a lengthy strategic review process.

The review attracted multiple bids and for good reason, given FN’s capital-light model that generates income across the mortgage origination, servicing, and securitization value chain. With plenty of time for other offers to surface…

… support from its founding shareholders (71% ownership), and a purchase price that represents a peak earnings multiple - this bid is likely to be the last.