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ivvy Homes, a rent-to-own startup, is being sold to Maymont Homes, Brookfield's built-to-rent arm, for $1 billion. However, this sale won't necessarily translate to a windfall for shareholders. According to a letter from CEO Adena Hefets, common shareholders and holders of Series FF preferred stock will not receive any consideration from the sale.

    Debtholders and preferred shareholders are expected to be the first to benefit from the acquisition, followed by equity holders such as venture capitalists. However, they too may end up with nothing due to transaction costs involved in the deal. Hefets cited difficult market conditions, including rising interest rates, as a reason for selling the struggling startup.

    In 2021, Divvy Homes owned over 7,000 homes across 19 markets, valued at more than $1.7 billion. The company's business model allowed customers to rent homes with a portion of their monthly payments set aside for a future down payment. However, the housing downturn severely impacted the startup's operations, leading to multiple rounds of layoffs and customer complaints about inadequate repairs and evictions.

    Hefets acknowledged that the sale was not the outcome she had hoped for, but expressed pride in the impact Divvy Homes had on its customers' lives. The acquisition marks a significant shift in the company's trajectory, with Brookfield aiming to capitalize on the built-to-rent market.