Berkshire Hathaway Invests in Embattled Lender Home Capital
- Buffett’s firm to buy shares, supply C$2 billion credit line
- Alternative lender attempts comeback after regulatory woes
Home Capital Secures $1.5 Billion Buffett Lifeline
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Warren Buffett’s Berkshire Hathaway Inc. is providing a lifeline to Home Capital Group Inc., the embattled Canadian alternative lender whose near collapse sparked intense scrutiny of the country’s fraught housing market.
Berkshire agreed to indirectly acquire C$400 million ($300 million) of the firm’s shares for a 38.4 percent stake and provide a C$2 billion credit line to subsidiary Home Trust Co., Home Capital said late Wednesday in Toronto.