Early Life and Education
Stephen J.R. Smith was born in Ottawa, Canada, on June 2, 1951. He attended St. Patrick's College High School. He later pursued a degree in Electrical Engineering at Queen's University, graduating in 1972. During his time at Queen's, Smith developed an interest in economics, taking courses from renowned economists Richard Lipsey and David C. Smith. Following his undergraduate studies, he obtained a Master's degree in economics from the London School of Economics and Political Science in the United Kingdom.
Rise to Success
Smith's career took off in 1988 when he co-founded First National Financial Corporation. First National quickly became the largest non-bank lender of mortgages in Canada. Smith's early work involved coding and IT for the company. His contributions led to the development of MERLIN, Canada's first online mortgage processing software. This technological innovation provided First National a competitive edge, enabling faster approval turnaround times and lower underwriting costs. In 2015, he donated $50 million to Queen's University's business school, which was subsequently renamed the Smith School of Business.
Key Business Strategies
A key strategy for Smith's success was the early adoption of technology to streamline mortgage processing. This resulted in lower costs and quicker approvals. Smith also invested in building partnerships and making strategic acquisitions, such as his acquisition of AIG's Canadian mortgage insurance business after the 2008 financial crisis. Furthermore, Smith has a stake in publicly traded Canadian bank EQB and acquired lender Home Trust for more than $1.2 billion in 2023. He also became Chairman of Peloton Capital Partners, a mid-market private equity firm in 2018.
Philanthropy
Smith has made significant philanthropic contributions, particularly to Queen's University. His initial involvement with Queen's began in 1997, when he established a financial award for students in Electrical Engineering and Economics. In 2015, he made a $50 million donation to Queen's University's business school, which was then renamed the Smith School of Business. In 2023, he gave $100 million for Queen's engineering department, which was renamed the Stephen J. R. Smith Faculty of Engineering and Applied Science. Smith also supports other organizations such as the Royal Ontario Museum, Rideau Hall Foundation and Historica Canada.