Foreside Financial Group, which offers compliance services to wealth managers, has divulged plans to acquire compliance, consulting, and FINOP practice Capital Markets Compliance (CMC).
Established in 1999, Atlanta-based CMC caters to financial services companies that provide securities products through full-service brokerage operations, investment banking, and investment advisory services.
Foreside, which offers a range of services and technology solutions, intends to incorporate CMC’s proprietary technology into its platforms.
As part of the deal, Foreside will absorb CMC’s managing team Karen Alvarez and Rick Alvarez, together with their team of 13 employees.
Foreside president David Whitaker said: “We are proud to demonstrate our continued growth with the acquisition of CMC.
“Their highly regarded and successful practice complements our FINOP, Broker-Dealer, and Investment Advisor consulting businesses, expands our accounting and financial support capabilities, and augments our existing tech solutions to provide a consistent quality of client service and industry expertise that we continue to enhance through these types of acquisitions.”
Commenting on the deal, Alvarez said: “We’ve been approached in the past with acquisition opportunities and were wanting to scale the business, but were striving to find the right fit, depth of expertise, and intrinsic knowledge of our industry.
“We feel we’ve found the perfect partner in Foreside whose customised service model and technology matches ours, and whose operational strength will help alleviate the day-to-day responsibilities and allow us to better focus on growing the business.”
Other deals by Foreside
The latest deal, whose value was not revealed, marks Foreside’s fifth acquisition since 2019.
Last November, the company snapped up regulatory compliance services firm ICSGroup.
In March last year, Foreside wrapped up the acquisition of a mutual fund and ETF distribution business Quasar Distributors, which was a wholly-owned subsidiary of U.S. Bancorp.
The company also purchased regional compliance firm Compliance Advisory Services, in October 2019 and NCS Regulatory Compliance in January 2019.
In 2016, Foreside agreed to acquire Beacon Hill Fund Services for an undisclosed sum.