Quicken Loans Rumored to be Going Public

**7miledog** · June-11-20, 07:41 PM

Thoughts on the effect this will have on Detroit?

https://www.freep.com/story/money/bu...es/5346535002/

**Gistok** · June-11-20, 07:57 PM

Since he owns Quicken Loans without partners [[I believe?)... "10's of billions" that he would get in an IPO would by far make him the richest billionaire in Michigan. Right now the Meijer's are the richest at $7 billion, and Gilbert and the Ilitches are almost tied at $6 billion for 2nd/3rd spot.

He could still maintain majority ownership and be worth tens of billions.

If he still wants to put all his "eggs" in the Detroit basket... it could be mind boggling the amount of additional investing he could do here.

**Atticus** · June-11-20, 08:13 PM

Originally Posted by Gistok

Since he owns Quicken Loans without partners [[I believe?)... "10's of billions" that he would get in an IPO would by far make him the richest billionaire in Michigan. Right now the Meijer's are the richest at $7 billion, and Gilbert and the Ilitches are almost tied at $6 billion for 2nd/3rd spot.

He could still maintain majority ownership and be worth tens of billions.

If he still wants to put all his "eggs" in the Detroit basket... it could be mind boggling the amount of additional investing he could do here.

Mixed feelings. I hope the IPO would not include Bedrock [[Quicken only). Anytime a business goes public, the business becomes beholden to quicker profits as demanded by the shareholders. Thus some of Gilbert’s long term strategies become more difficult under a publicly traded setup, as the investors may not share the same patience. And Detroit needs more of that long term patience and vision.

**Scottathew** · June-11-20, 08:19 PM

Wow, that's big news. I have no idea if it's a good or bad thing. If Gilbert is the person we hope he is it might mean more money for the things he want to do in Detroit. Perhaps he wants to cement his name in history.

Keep in mind that he has sold and bought back QL before with the Intuit deal.

**Satiricalivory** · June-11-20, 08:33 PM

I'm pretty sure he's been the richest man in Michigan for awhile now. Last I heard he's worth 8 Billion.

**Satiricalivory** · June-11-20, 08:36 PM

Originally Posted by Atticus

Mixed feelings. I hope the IPO would not include Bedrock [[Quicken only).

This obviously does not include Bedrock otherwise it would be Rock Ventures going public not Quicken Loans. All his other companies are separate.

**313WX** · June-12-20, 07:02 AM

Originally Posted by Satiricalivory

I'm pretty sure he's been the richest man in Michigan for awhile now. Last I heard he's worth 8 Billion.

You are correct about him already being the richest man in the state

**401don** · June-12-20, 07:05 AM

Not sure if it's feasible because I'm not a finance guy but is there any way for Gilbert to set it up like Ford where the family controls the company through its preferred voting shares?

**313WX** · June-12-20, 07:23 AM

Originally Posted by Satiricalivory

This obviously does not include Bedrock otherwise it would be Rock Ventures going public not Quicken Loans. All his other companies are separate.

To clarify, while they are technically separate legal entities for taxation and regulation purposes, Quicken Loans and his other companies are all officially subsidiaries of Rock Ventures. They have to seek approval from Rock Ventures when making decisiond and their financials are consolidated into Rock's.

So Quicken Loans alone going public would, in effect, be a spin-off.

**Richard** · June-12-20, 07:52 AM

"We don’t comment on speculation or rumor," said Aaron Walker, chief communications officer for Gilbert's Rock Ventures, which serves and connects Gilbert’s portfolio of more than 100 companies.

So based on speculation and rumors it is already a done deal?

**313WX** · June-12-20, 08:01 AM

Originally Posted by Richard

"We don’t comment on speculation or rumor," said Aaron Walker, chief communications officer for Gilbert's Rock Ventures, which serves and connects Gilbert’s portfolio of more than 100 companies.

So based on speculation and rumors it is already a done deal?

As I'm sure you know, typically this type of news is leaked intentionally when it's virtually all but certain to happen in order to get a feel of how people will react.

**iheartthed** · June-12-20, 01:55 PM

Originally Posted by 7miledog

Thoughts on the effect this will have on Detroit?

https://www.freep.com/story/money/bu...es/5346535002/

Probably not much.

**Gistok** · June-12-20, 02:45 PM

^^

What??

Dan Gilbert could get 10's of billions of dollars in CASH... and you don't think it might help Detroit??

Dan Gilbert signed the same pact as Bill & Melinda Gates and Warren Buffet... to give away their money to philanthropy. With Dan Gilbert... charity [[of sorts) always begins at home.

Just look at how much help the late Ralph Wilson [[of Grosse Pte. Shores) is doing for Detroit and Buffalo. His legacy [[$1.2 billion fortune) is being given away to both cities within 20 years... at the tune of about $50 million yearly to each city. Wilson's charity is paying entirely for that park on the west side with the inlet and beach.

Dan Gilbert could do sooooo much with his money to help Detroit... even besides the rehabilitation [[and building) of over 100 buildings downtown.

Selling a chunk of Quicken Loans could do so much more for Detroit... if he so chooses.

He had a near death experience in 2019... and maybe his outlook on life is not to work himself to death... but to do good and leave a legacy to the city he loves.

I may be way overly optimistic... but there is a lot he could do for the city he loves.

**Satiricalivory** · June-12-20, 06:42 PM

What does Quicken Loans plan to go public mean for city of Detroit?

...When a company of this size sells stock, it attracts billions of dollars that can be spread around in many ways.

Investment banker Sheldon Stone, of Amherst Partners, said a Quicken Loans initial public offering could mean a lot for the city of Detroit.

“If they add people and infrastructure and add jobs, it could be a beautiful thing for Detroit,” Stone said.
He believes Gilbert chose an especially good time to pull this together. Mortgage interest rates are low and the FED intends to keep them that way for a while, he said. That arms Gilbert with cash to better compete with banks.

“Whether new mortgages come in the form of new houses being purchased or refinanced at a mortgage rate under 3%, there is going to be a lot of people refinancing mortgages with that interest rate,” Stone said.

Gilbert recently said everything he does is through the prism of what’s best for Detroit. Stone believes Gilbert knows exactly how he’s going to use this new money.

https://www.clickondetroit.com/news/...ty-of-detroit/

I think I agree, this is certainly more than nothing. They've likely been planning this IPO for a very long time.

**iheartthed** · June-13-20, 11:43 AM

Originally Posted by Gistok

^^

What??

Dan Gilbert could get 10's of billions of dollars in CASH... and you don't think it might help Detroit??

Dan Gilbert signed the same pact as Bill & Melinda Gates and Warren Buffet... to give away their money to philanthropy. With Dan Gilbert... charity [[of sorts) always begins at home.

Just look at how much help the late Ralph Wilson [[of Grosse Pte. Shores) is doing for Detroit and Buffalo. His legacy [[$1.2 billion fortune) is being given away to both cities within 20 years... at the tune of about $50 million yearly to each city. Wilson's charity is paying entirely for that park on the west side with the inlet and beach.

Dan Gilbert could do sooooo much with his money to help Detroit... even besides the rehabilitation [[and building) of over 100 buildings downtown.

Selling a chunk of Quicken Loans could do so much more for Detroit... if he so chooses.

He had a near death experience in 2019... and maybe his outlook on life is not to work himself to death... but to do good and leave a legacy to the city he loves.

I may be way overly optimistic... but there is a lot he could do for the city he loves.

He doesn't have to take the company public to sell stakes in the company, but they have calculated that an IPO is the best way to raise money right now. Also, this type of IPO is different from IPOs that we see in tech, because so much of Quicken is held by Gilbert himself. With tech companies, a lot of the company is usually owned by employees, so a large IPO can create 100s of millionaires at once. I don't think many Quicken employees actually hold a stake in the company, so it's hard to see how this really changes the dynamic.

**Gistok** · June-13-20, 12:50 PM

Originally Posted by iheartthed

He doesn't have to take the company public to sell stakes in the company, but they have calculated that an IPO is the best way to raise money right now. Also, this type of IPO is different from IPOs that we see in tech, because so much of Quicken is held by Gilbert himself. With tech companies, a lot of the company is usually owned by employees, so a large IPO can create 100s of millionaires at once. I don't think many Quicken employees actually hold a stake in the company, so it's hard to see how this really changes the dynamic.

Um... unless I misunderstood your comment... him ALONE having TENS OF BILLIONS of dollars in extra disposable cash... definitely DOES change the dynamic.... of developing Detroit!

He could build any building he wants to without any banks involved [[no pre-leasing required!).

He could buy any company that suits his fancy [[not huge ones of course)... and relocate them to Detroit [[if he wants).

He could rebuild any neighborhood [[if he wants).

He could buy all that empty Ilitch property and build his own District Detroit.

When you have 10s of billions of dollars... you can do a lot!!

And still get to keep control of Quicken Loans!!

How is that not a win-win for Detroit... especially as the Freep said... he's doing this with the intention of what's best for Detroit [[as well lining his own pockets).

**Gistok** · June-13-20, 12:58 PM

I know some of you feel that he already owns a disproportionate amount of Detroit real estate... but would you really rather he spend his soon to be gotten extra tens of billions elsewhere??

I don't think so. He could be our 21st century version of Henry Ford...

My mentor and friend [[and also good friend of Lowell)... the late Tony Pieroni once told me that the problem that downtown Detroit [[as well as the rest of the city) has is that there is not enough money here to do the things to make Detroit great again. Well if Dan Gilbert gets his hands on a vast sum of money, and truly loves this city... then Detroit has hope again. Money... and the jobs that it can create, are a powerful tool to bring the city and region back as a powerhouse. It just needs vision and ingenuity... and of course money! .... lord knows we already have the infrastructure...

**Lowell** · June-13-20, 01:15 PM

Originally Posted by 401don

Not sure if it's feasible because I'm not a finance guy but is there any way for Gilbert to set it up like Ford where the family controls the company through its preferred voting shares?

And like the Ford's he wouldn't even have to have a majority of the shares to retain control.

This will likely be a HUGE IPO--$100 billion Plus? I'd be tempted to jump in on this one--this is a booming and rising company. Consider this comparison to Wells Fargo, a stumbling company whose market capitalization is still $114 Billion, even with its share value down 50%+ from over a year ago.

"In 2019, Quicken Loans funded $145.8 billion in mortgages overall [[per Inside Mortgage Finance), placing it second behind Wells Fargo’s $201.8 billion in overall funded volume.

"And on IMF’s 2019 retail-only mortgage fundings list [[which excludes certain sales channels), Quicken Loans funded $142.8 billion placing it above Wells Fargo’s $94.25 billion. Plus, Quicken Loans beat Wells in overall mortgage fundings for Q1 2020 [[$61.7 billion vs. $47.6 billion).
https://www.housingwire.com/articles...es-cool-again/

**Lowell** · June-13-20, 01:17 PM

Originally Posted by Gistok

I know some of you feel that he already owns a disproportionate amount of Detroit real estate... but would you really rather he spend his soon to be gotten extra tens of billions elsewhere??

I don't think so. He could be our 21st century version of Henry Ford...

My mentor and friend [[and also good friend of Lowell)... the late Tony Pieroni once told me that the problem that downtown Detroit [[as well as the rest of the city) has is that there is not enough money here to do the things to make Detroit great again. Well if Dan Gilbert gets his hands on a vast sum of money, and truly loves this city... then Detroit has hope again. Money... and the jobs that it can create, are a powerful tool to bring the city and region back as a powerhouse. It just needs vision and ingenuity... and of course money.

Tony Pieroni also liked to say that Detroit should take out a $5 Billion life insurance policy on Dan Gilbert.

**Meddle** · June-13-20, 03:33 PM

Originally Posted by Gistok

He had a near death experience in 2019... and maybe his outlook on life is not to work himself to death... but to do good and leave a legacy to the city he loves.

Perhaps his fist move in stepping away and breaking things up to have others take over. Perhaps he's thinking his clock is on overtime and he doesn't have much left, so he's trying to organize what will follow.

**iheartthed** · June-13-20, 05:09 PM

Originally Posted by Gistok

Um... unless I misunderstood your comment... him ALONE having TENS OF BILLIONS of dollars in extra disposable cash... definitely DOES change the dynamic.... of developing Detroit!

He could build any building he wants to without any banks involved [[no pre-leasing required!).

He could buy any company that suits his fancy [[not huge ones of course)... and relocate them to Detroit [[if he wants).

He could rebuild any neighborhood [[if he wants).

He could buy all that empty Ilitch property and build his own District Detroit.

When you have 10s of billions of dollars... you can do a lot!!

And still get to keep control of Quicken Loans!!

How is that not a win-win for Detroit... especially as the Freep said... he's doing this with the intention of what's best for Detroit [[as well lining his own pockets).

He won't have 10s of billions of cash on hand unless he sells his stake and loses control of his company.

I'm still firm in my opinion that this doesn't change much for Detroit. A game changer would be an IPO that converted a bunch of employees into millionaires, like what often happens when a Silicon Valley tech company IPOs. And when Quicken does IPO, it won't even be close to being the largest publicly traded company headquartered in Detroit.

**Gistok** · June-13-20, 05:12 PM

Originally Posted by Meddle

Perhaps his fist move in stepping away and breaking things up to have others take over. Perhaps he's thinking his clock is on overtime and he doesn't have much left, so he's trying to organize what will follow.

If you want to put a negative spin on it... I guess that's about right.

I look at it more positively... he had a reality check in the worst way possible, and since he's in his 50s and not 70s... his 5 year survival rate is much higher. He may well be looking at setting things up should the worst scenario happen to him, but at the same time he may want to leave a legacy behind him. And if he's around another 20 years... 10s of billions of $ can create quite a legacy.

Life is too short to be a workaholic. I'm sure he see's that now, and has been given a 2nd chance... and live life to the fullest for whatever time he has left... hopefully a long time.

P.S. My only maternal uncle died of a stroke at 53... also a workaholic... but he was overweight, which made it worse.

**Satiricalivory** · June-13-20, 08:24 PM

Originally Posted by iheartthed

He doesn't have to take the company public to sell stakes in the company, but they have calculated that an IPO is the best way to raise money right now. Also, this type of IPO is different from IPOs that we see in tech, because so much of Quicken is held by Gilbert himself. With tech companies, a lot of the company is usually owned by employees, so a large IPO can create 100s of millionaires at once. I don't think many Quicken employees actually hold a stake in the company, so it's hard to see how this really changes the dynamic.

So they go public so they can do nothing with the raised capital... that makes sense to you? At the very least it means a lot more invest will be going on and a lot more jobs even if we have no idea how many people at Quicken own a stake.

**iheartthed** · June-14-20, 10:54 AM

Originally Posted by Satiricalivory

So they go public so they can do nothing with the raised capital... that makes sense to you? At the very least it means a lot more invest will be going on and a lot more jobs even if we have no idea how many people at Quicken own a stake.

It does not automatically mean more jobs. You have no idea what they plan to do with their capital. They could use it to acquire other companies and shut them down.

**Richard** · June-14-20, 11:43 AM

Going public they will be looking at returns more so then emotional investment,they will not base it on long term visions.

Stockholders have to be appeased and they will not be looking at risky investments as a private ownership would be.

What about Cleveland?

Sports team owners have to be bleeding cash in these times with multi million dollar salaries that have to be paid with no incoming revenue.