Falfurrias Capital Partners has acquired a controlling stake in RegEd from StoneRiver Group L.P. No financial terms were disclosed. SunTrust Robinson Humphrey served as financial advisor to RegEd on the transaction. Based in Morrisville, North Carolina, RegEd is a provider of compliance software and solutions for the financial services sector.
CHARLOTTE, N.C. (July 7, 2015) — Falfurrias Capital Partners, a Charlotte-based private equity firm focused on investing in growth-oriented middle-market companies, today announced it has purchased a controlling interest in RegEd, a leading provider of compliance software and solutions for the financial services industry, from StoneRiver Group, L.P.
Founded in 1994 and based in Morrisville, N.C., RegEd provides Compliance Education and Training, Compliance and Risk Management and Licensing and Registration solutions and services. With more than 400 enterprise clients, RegEd’s solutions enable financial services firms to efficiently comply with state, federal, FINRA and other regulations impacting broker-dealers, insurance companies and insurance brokers.
“Falfurrias Capital Partners is extremely pleased to partner with RegEd to address the needs of financial institutions confronted by more and increasingly complex regulations,” said Managing Partner Marc D. Oken. “With our deep experience and contacts in the financial services industry, Falfurrias is uniquely positioned to deliver the additional resources RegEd’s outstanding management team needs to grow its already strong brand.”
The platform investment in RegEd is part of Falfurrias Capital’s broader strategy focused on building a diversified regulatory compliance services and technology firm serving financial institutions. The strategy is designed to leverage the industry knowledge and relationships of Falfurrias principals, including co-founders Hugh McColl Jr., former CEO of Bank of America, and Oken, a former Bank of America CFO.
“We are very proud of RegEd’s customer focus, legacy of innovation and market-leading solutions, and we are excited to partner with Falfurrias, a firm with deep roots in the financial services industry and one that shares our vision for the future,” said John M. Schobel, CEO & Founder of RegEd. “Joining forces with Falfurrias will support RegEd’s continued growth and enable us to better serve our loyal client base.”
Schobel will lead the existing RegEd management team and the company will continue operating as a stand-alone entity.
SunTrust Robinson Humphrey acted as financial advisor to RegEd.
RegEd is a leading provider of compliance technology solutions with relationships with more than 400 enterprise clients, including 80% of the top 25 broker-dealers and top 25 insurance companies. Established in 1994 by former regulators, the company is a recognized industry authority and has created the standard of excellence for rule-based and content-driven compliance automation for insurance companies, investment advisors and broker-dealers. RegEd solutions drive new levels of operational efficiency and enable firms to cost-effectively comply with regulations and mitigate risk. For more information, visit www.reged.com
About Falfurrias Capital Partners
Falfurrias Capital Partners was founded in 2006 by former Bank of America executives Hugh McColl and Marc Oken with the objective of partnering with proven management teams to identify growth opportunities and give them the resources they need to build world class middle-market businesses. Using our proprietary, theme-based Industry First methodology, we identify attractive markets where we can most effectively leverage our resources and relationships. Falfurrias invests in companies with EBITDA of $3 million to $25 million across a range of sectors, including consumer & retail, food & beverage, business services, financial services, manufacturing, industrials, energy, and health care. For more information, visit www.falfurriascapital.com.