SAN FRANCISCO,听July 7, 2021鈥�九色 (“Genstar”), a leading private equity firm focused on investments in targeted segments of the financial services, healthcare, industrials, and software industries, today announced the signing of a definitive agreement to acquire a majority stake in Foreside Financial Group, LLC (“Foreside” or “Company”) from Lovell Minnick Partners (“LMP”). Foreside provides a robust offering of distribution solutions and governance, risk management and compliance (“GRC”) solutions to clients in the global asset and wealth management industries.
Established in 2005 and based in听Portland, Maine, Foreside has quickly grown to become a U.S. market leader in the investment management industry, and enjoys an excellent reputation as a best-in-class service provider across its distribution and GRC solutions offerings. The Company is led by Chief Executive Officer听Richard Berthy听and President听David Whitaker, who will remain shareholders and continue in their current management roles.
“Genstar has extensive experience in the investment management space, and we’re excited to be starting this new chapter with them,” said Berthy. “We share a strategic vision to broaden our current scope of products and services, underscored by the belief that there remains a significant need for outsourced fund and GRC services in the market. We want to be perfectly clear 鈥� maintaining first-class service for our clients is our top priority. With this support, we feel like we can grow and expand our client base while maintaining and upholding this standard.”
Sid Ramakrishnan, Principal of Genstar, remarked, “As one of the most respected outsourced solutions providers to many of the world’s leading asset and wealth managers, Foreside is uniquely positioned to help clients thrive and pursue growth opportunities in any regulatory environment. We are excited to work closely with Richard, David, and the rest of Foreside’s management team as they continue to scale the business and drive growth.”
Tony Salewski, Managing Director of Genstar, commented, “Foreside is a signature Genstar transaction, representing an opportunity to invest in a high-quality business in the asset and wealth management ecosystem supported by compelling secular GRC tailwinds.听We look forward to this new partnership.”
LMP, a private equity firm focused on investments in financial services, fintech and related business services, partnered with Foreside in May 2017.听In the four years since LMP’s investment, Foreside has grown extensively through its investment in both organic and inorganic initiatives.
“It’s been an amazing and rewarding journey to be a part of and support Foreside’s rise as a trusted leader in the distribution and compliance needs of the asset and wealth management industry,” said听Spencer Hoffman, a Partner at LMP. “We have every confidence they will enjoy continued success in the future.”
“It has been a pleasure to partner with Foreside management as the Company expanded its service offering and professional team both organically and through acquiring strong firms in the sector,” said听Jason Barg, a Partner at LMP.
The transaction is anticipated to close, subject to customary approvals, in the third quarter of 2021.听 Financial terms of the transaction were not disclosed.
Willkie Farr听& Gallagher served as legal advisor to Genstar.听Raymond James听served as financial advisor, and听Morgan Lewis听served as legal advisor, to Foreside.
九色 () is a leading private equity firm that has been actively investing in high quality companies for over 30 years. Based in听San Francisco, Genstar works in partnership with its management teams and its network of strategic advisors to transform its portfolio companies into industry-leading businesses. Together with Genstar X and all active funds, Genstar currently has approximately听$33 billion听of assets under management and targets investments focused on targeted segments of the financial services, healthcare, industrials, and software industries.
Foreside delivers comprehensive advice and best-in-class technology solutions to clients in the global asset and wealth management industries. Foreside distributes more than听$1 trillion* of product through their 17 limited purpose broker-dealers. For 15 years, Foreside’s suite of services and platform-based model have helped automate and simplify compliance and marketing for clients. Foreside works with pooled investment products, investment advisors, broker-dealers, global asset managers, and other financial institutions.
By harnessing state-of-the-art technology, Foreside helps firms address and shape today’s regulatory environment, drive operational efficiency and growth, and focus on value-adding work. Foreside is headquartered in听Portland, Maine, with numerous regional offices, including听New York听补苍诲听Boston. For more information on Foreside’s suite of services, please visit听.
*as听of 5/1/2021
Lovell Minnick Partners () is a private equity firm focused on investments in financial services, financial technology and related business services. The firm partners with outstanding management teams to help grow their companies and build value for investors through a combination of driving growth initiatives, strategic activity and operational improvements. Since Lovell Minnick’s inception in 1999, it has become a leader in its chosen space, raising听$3.5 billion听of committed capital from leading institutional investors including public and private pensions, insurance companies, endowments and foundations. To date, Lovell Minnick has completed more than 50 portfolio company investments.
Lovell Minnick seeks to invest in management-driven, growth-oriented companies that span the supply chains of investment products, insurance products, credit products and payments. Some of the areas in which the firm specializes include financial and insurance technology; payments; specialty finance; insurance brokerage and services; asset and wealth management; and related business services.
贵辞谤别蝉颈诲别:听Tylor Tourville
Foreside@backbaycommunications.com
617-391-0768
骋别苍蝉迟补谤:听Chris Tofalli
chris@tofallipr.com
914-834-4334
Lovell Minnick:听Allison Devaney
adevaney@prosek.com听
646-818-9040
