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July 8, 2021

Genstar Capital to buy majority interest in Foreside Financial

By Verdict Staff

San Francisco-based middle market private equity firm Genstar Capital has signed a deal to purchase a majority stake in Foreside Financial Group from Lovell Minnick Partners (LMP).

Financial terms of the transaction were not disclosed.

The transaction is anticipated to close in the third quarter of the year, subject to customary approvals.

Established in 2005, Portland-based Foreside provides distribution solutions and governance, risk management and compliance (GRC) solutions to asset and wealth management clients.

The company, which has been on an acquisition spree of late, recently bought Hardin Compliance Consulting to create one of the largest compliance consulting firms for the US financial services industry.

It marked Foreside’s eighth acquisition since 2019.

Foreside is led by CEO Richard Berthy and president David Whitaker, who continue in their current management roles and will remain shareholders of the firm.

Genstar managing director Tony Salewski said: “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. We look forward to this new partnership.”

LMP struck partnership with Foreside in May 2017 as part of a strategic investment in the firm.

LMP partner Jason Barg said: “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.”

Genstar was served by Willkie Farr & Gallagher as legal advisor.

Raymond James served as financial advisor, and Morgan Lewis as legal advisor, to Foreside.

In 2015, Genstar inked a definitive agreement to partner with management to acquire majority interest in Mercer Advisors from LMP.

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