Which Compass investors have the most to gain? Compass investors in line for payday, $100M for a flex-living startup Compass investors could be in line for a windfall when the residential brokerage goes public later this year. Since its launch in 2012, Compass has raised more than $1.5 billion from investors, who collectively hold a 60.25 percent stake in the startup,
The residential brokerage, which has raised $1.5 billion from investors including SoftBank, said it submitted a draft registration statement with the U.S. Securities and Exchange Commission on Monday.
The impending IPO has been the subject of intense speculation in the real estate world.
Over the past year, Compass been laying the groundwork for a public offering by rounding out its C-suite and building up an independent board.
In 2019, it ranked as the No. 3 residential firms in the country with $91.3 billion in sales, according to Real Trends.
Like other real estate firms, Compass was forced to make cuts when Covid hit, and in March it laid off 15 percent of staff. But as the housing market bounced back, Compass reported record revenue in June, July and August.
In an email to agents last month, CEO Robert Reffkin addressed the rumored IPO. “Being public will allow Compass to raise capital that we can invest in more tools and more support to help you,” he wrote.
Earlier this month, Compass was sued by a former agent in California who accused the firm of using “bait-and-switch” tactics to lure him and other agents from competitors. In 2019, real estate giant Realogy (owner of Coldwell Banker and others) accused Compass of “predatory” poaching and unfair business practices. That suit is ongoing.