Genworth Financial has agreed to sell Genworth Wealth Management to Aquiline Capital Partners and Genstar Capital for $412.5 million. The deal, which is expected to close in the second half, includes Genworth Financial Wealth Management and Altegris. Credit Suisse is providing debt financing. Aquiline and Genstar were advised by Deutsche Bank.
Aquiline Capital Partners LLC (“Aquiline”), a New York-based private equity firm investing in the financial services sector, and Genstar Capital, LLC (“Genstar”), a middle market private equity firm based in San Francisco, today announced that they have agreed to acquire Genworth Wealth Management from Genworth Financial, Inc. (NYSE: GNW) (“Genworth”) for $412.5 million. 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.
Together, the two businesses make up a leading wealth management platform and an alternative investment solutions provider. 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 deep commitment to research. Altegris’ products provide an efficient solution for financial professionals and individuals seeking alternative investments.
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,” said Jeff Greenberg, 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,” added Tony Salewski, a Principal of Genstar. “Aquiline and Genstar will leverage our collective investment experience to help the management teams capitalize on these trends and grow their businesses.”
Jean-Pierre L. Conte, Managing Director and Chairman of Genstar, commented: “This acquisition, in partnership with Aquiline, is a demonstration of our continued focus of investing in targeted, attractive segments within the financial services sector.”
“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,” said 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.”
“As a specialist with deep roots in the alternative investment industry, we take great pride in our investment teams, whose proven, research-driven process helps us provide our clients with the best in alternatives,” said Jon Sundt, President and CEO of Altegris. “We appreciate that our new strategic partners, Aquiline and Genstar, recognize the strength of our operations, and we are excited to invest alongside them in Altegris as we build a stronger foundation for our future.”
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.
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About Aquiline Capital Partners LLC
Aquiline is a private equity firm based in New York investing in financial services enterprises in industries such as asset management, property and casualty insurance, banking, securities, life insurance and financial technology. Aquiline seeks to add value to its portfolio companies through strategic, operational, and financial guidance.
About Genstar Capital, LLC
Genstar Capital is a leading private equity firm that has been actively investing in high quality companies for more than 20 years. Based in 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. Genstar has more than $4 billion of committed capital under management and targets investments focused on selected sectors within the financial services, software, healthcare, and industrial technology industries.