First National Financial Corp. has officially completed its $2.9-billion privatization deal, marking a major ownership shift for one of Canada’s largest non-bank mortgage lenders.
The transaction, first announced in July, sees private equity firms Birch Hill Equity Partners and Brookfield Asset Management acquire roughly 62% of First National’s equity through a new holding entity, Regal Holdings LP.
Founders Stephen Smith and Moray Tawse each retain an indirect 19% stake, maintaining significant involvement in the company they co-founded nearly four decades ago.
Under the agreement, all outstanding common shares—excluding those held by Smith and Tawse—were purchased for $48 per share in cash, representing about a 15% premium over the company’s 30-day average at the time of the announcement. The deal values the company at approximately $2.9 billion.
New ownership, same leadership
First National’s senior management team remains unchanged, with Jason Ellis continuing as CEO and Moray Tawse serving as board chair.
At Mortgage Professionals Canada’s National Conference held this week, Ellis told attendees that while the lender is returning to private ownership, nothing about its day-to-day business or broker relationships will change.
“On Wednesday we’ll be closing our agreement with Birch Hill and Brookfield to take First National back private,” he said. “But when we wake up on Thursday morning, nothing will be any different. It’s going to be the same as it ever was—just a few different board members and a little bit more hassle for me from a reporting perspective.”
Ellis added that the transaction will also provide additional resources for the company’s future growth. “They’re going to empower us with capital and technology and some great intellectual resources,” he said, “but otherwise it’s business as usual at First National.”
The new board now includes 10 directors, with plans to expand to 11 once William Stone joins following a future amendment to the company’s articles.
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Last modified: October 23, 2025