General Atlantic Looking For "Put Right" Clause in funda Deal to Curb Agent Association Abuse of Power

December 5, 2023

General Atlantic, the American private equity firm looking to buy a minority stake in funda, wants to oblige the Dutch Association of Real Estate Agents (NVM) to re-purchase shares if the portal's performance starts to lag or if the association abuses its power.

Funda is the leading real estate portal in the Dutch market and one of a dwindling number of portals owned by agent interests. Its most powerful shareholder is the Dutch Association of Real Estate Agents (NVM), which has been accused of using its power to limit market competition and stifle the portal's growth.

The conflict resulted in the departure of funda CEO Quentin Schevernels in 2021 and eventually led to funda seeking outside investment in May 2023. Several bids were considered with General Atlantic ultimately chosen in November thanks to the New York-based firm's experience working with leading European real estate portals including Hemnet, Immoweb, Homegate and ImmoScout24.

Dutch business publication FD.nl claims to have seen details of General Atlantic's offer to funda's shareholders. It claims that the private equity giant wants a mechanism to sell its shares to the NVM if the association's decisions impact the portal's financial performance or overly favour NVM members.

General Atlantic is seeking to include a "put right" option into the proposed deal which would see it acquire a maximum 29.4% interest in the company that runs the portal. Under the proposed deal the NVM would retain a minimum 70% interest in funda.

Both the NVM and General Atlantic declined to reveal to FD any specific questions about the deal but an NVM spokesperson did confirm the existence of the put right clause.

The private equity firm would be buying shares from around 2,200 early agent and brokerage investors. Many have long been keen to cash in on their shares but had been prevented from doing so by NVM's reluctance to allow individual members to sell their shares to outsiders. Shareholders looking to sell to GA have until December 22nd to register their share certificates.

December 5, 2023
Since March 2020 Edmund's job has been to read about, write about, collect data on, analyse and generally know about real estate marketplaces and the companies that run them. Before that he worked at the aggregator Mitula Group (which became Lifull Connect) for five years.

Subscribe to our mailing list to get the famous, free Friday newsletter!

News and analysis to help build better online marketplace businesses, in your inbox, every Friday

Related News

Cooperrocketacq
Rocket to Acquire Mr Cooper Mortgage Service for $9.4 Billion

Rocket Companies has announced a $9.4 billion all-share deal to acquire Mr. Cooper, the largest mortgage servicer in the United...

Read More
Scout24 German Houses 1
Scout24 Closes Another Data-Focused Acquisition

Germany-based marketplace operator Scout24 has continued its expansion into real estate data with the acquisition of Austrian proptech firm ImmoUnited....

Read More
People Roundup 28Mar 2
People Roundup: Aviv Group, Pisos.com, Kleinanzeigen, REA India, Anjuke

There have been several high profile C-suite moves in this week's People Roundup. We'll start in Europe...   Europe: Aviv...

Read More
Product Update 2025Mar28 3
Product and Services Roundup: Zoopla, ViewIt

This week's Product Roundup starts in the UK, where it's all about Zoopla...   UK: Zoopla's MyHome product is used...

Read More

Editor's Pick