TA Associates has signed an agreement to acquire a majority interest in NorthStar Financial Services Group including its nine subsidiary wealth management industry service providers. NorthStar’s management team will remain as significant owners of the company.
“NorthStar and its management team have created a platform that serves multiple channels within the global wealth management industry, from money management and pooled investment solutions to integrated technology and compliance services,” said M. Roy Burns, a Managing Director at TA Associates. “TA Associates’ considerable experience in financial services enables us to offer strategic counsel and resources to augment NorthStar’s organic growth and pursue strategic acquisitions to build long-term value.”
NorthStar Financial Services Group provides asset management, pooled investment services, portfolio accounting, fund distribution and compliance, and printing and marketing services. Customers include registered investment advisors (RIAs), independent broker dealers and investment management firms. The company has approximately $275 billion in assets under management and administration. NorthStar has about 700 employees and is headquartered in Omaha with additional offices in Hauppauge, NY; Chicago, IL; Mill Creek, WA; and Scottsdale, AZ (www.nstar-financial.com).
“The creation of new alternative investment products is occurring at a rapid pace and the RIA market is one of the highest growth segments in financial services,” said Todd Crockett, a Managing Director at TA Associates. “NorthStar is recognized as an innovative leader in these evolving sectors, providing RIAs and investment management firms SaaS-based solutions and high touch client-centric administrative services.”
TA Associates makes buyouts and minority recapitalizations of profitable growth companies in the technology, financial services, business services, healthcare and consumer industries. Since founding in 1968, TA has invested in over 450 companies globally and has raised more than $18 billion in capital. The firm has offices in Boston, Menlo Park, London, Mumbai and Hong Kong (www.ta.com).
Goodwin Procter is providing legal counsel to TA Associates. Mayer Brown is serving as legal counsel and Raymond James & Associates is acting as financial advisor to NorthStar.
© 2015 PEPD • Private Equity’s Leading News Magazine • 2-9-15