Aquiline Capital Partners, a New York-based private equity firm investing in the financial services sector, and Genstar Capital, a middle market private equity firm based in San Francisco, are to acquire Genworth Wealth Management from Genworth Financial for USD412.5m.
The sale by Genworth includes both of Genworth Wealth Management’s businesses: Genworth Financial Wealth Management (GFWM), an investment management and consulting platform, and Altegris, a provider of premier alternative investments.
GFWM primarily provides a growing universe of independent financial advisors with comprehensive support across every phase of their practice, helping them to meet clients’ wealth management and investment needs. Altegris offers a suite of liquid alternative mutual funds, a wide platform of hedge funds and separately managed accounts backed by a commitment to research.
Aquiline and Genstar will bring their operational expertise and industry experience to help GFWM and Altegris increase their scale and capabilities. Specifically, Aquiline and Genstar will work with the respective senior management teams to enhance product development and technology offerings at GFWM, and expand distribution channels and launch new alternative products at Altegris. By strengthening the companies’ infrastructures and capital bases, Aquiline and Genstar will create the foundation for ongoing growth and greater market share.
“Genworth Financial Wealth Management and Altegris are market-leading businesses with strong brands, experienced management teams and high growth potential,” says Jeff Greenberg (pictured), chief executive of Aquiline. “Both businesses provide strategic resources that differentiate them from their competitors in rapidly-growing industries. Together, they form an effective platform for investors. We look forward to working with Genstar to support these companies in their continued development.”
“GFWM and Altegris are each well-positioned to meet the growing needs of independent financial advisors and increased demand from retail investors for access to alternative products,” says Tony Salewski, a principal of Genstar. “Aquiline and Genstar will leverage our collective investment experience to help the management teams capitalise on these trends and grow their businesses.”
“We are pleased to welcome our new partners to our teams because they share our vision for continued growth and ongoing client focus. Aquiline and Genstar’s financial services expertise will support market innovation for advisors,” says Gurinder S Ahluwalia, president and chief executive officer of GFWM. “We look forward to working with them and leveraging their strategic, financial and operational support.”
Aquiline and Genstar were advised by Deutsche Bank. A debt financing commitment has been provided by Credit Suisse in connection with the acquisition. The transaction, subject to customary closing conditions, is expected to close in the second half of 2013.