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C&S Marketing – Profile

January 13, 2005

C&S Marketing
: Sacramento, CA
Founded: 1997
Management: Founders are Steve Schroeder (CEO) and Kraig Clark. Neither have been big hitters up to this point. Previously, Schroeder was a wonk with the California State Department of Housing and Finance, where he evaluated homebuyer and foreclosure behavior. He then went on to work sales of database marketing for Transamerica Intellitech (aka First American Real Estate Solutions.
Investors: TA Associates invested $50M for a minority position in C&S in 2004, but the company kept it a secret for 7 months until January 2005.
Business Model: C&S provides lenders with technology to process loans faster/cheaper/better. The company’s main platform aggregates automated valuation models (AVMs) from 15 regional vendors. Not that long ago, on-site appraisals were necessary for real estate transaction including home purchases and refinancing. C&S has led in aggregating data such as comparable prices so that lenders can appraise over the phone. C&S currently has accounts with 49 of the top 50 mortgage lending companies in the U.S. It grew from $4M in sales in 2001 to $58M in 2004. Company values the market at nearly $3.25B.
Dirt: C&S has dramatically changed the loan processing in the country and has built great value for itself. On the downside, we don’t like it that the company made less than $60M in a year that set staggering rates of mortgage financing and refinancing. The company has been super-stealthy so we hope they have undisclosed plans to get into new areas of business before the market cools.

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