Parthenon Capital buys Millennium Trust

Financial terms weren’t announced, though a banking source said the company sold for $150 million. A Millennium spokesman declined to confirm the price.

Parthenon is buying a majority of the company, the spokesman said. Private individuals sold Millennium, the spokesman said, declining the identify the sellers.

Oak Brook, Illinois-based Millennium Trust provides alternative custody solutions to institutions, advisers and individuals. The firm has 383,000 accounts under administration and more than $15.4 billion in total assets under custody, a statement said.

The auction generated a lot of interest. The firm received “over 20 bids” in the first round, Buyouts previously reported. Millennium is a high-growth, services-oriented business that is too small for strategics. In fact, no strategics made offers for Millennium, one banker said.

Firms that made offers for Millennium include Aquiline Capital PartnersLightyear CapitalLovell Minnick Partners and LLR Partners, banking and private equity sources said.

“It was all PE firms,” a banker said. 

Rob MetzgerPhil OlsonJon Skinner and Solange Velazquez of William Blair advised Millennium Trust.

Founded in 1998, Parthenon Capital targets middle-market companies in three sectors financial, healthcare and business services. In July, Parthenon agreed to sell Altegra Health to Emdeon Inc. It invested in Stratose Inc in June and said it would sell ASG Security to Apollo Global Management in May.

Parthenon raised $700 million with its fourth fund in 2012. Parthenon Investors IV LP generated a 2.87 percent average IRR and 1.04x average multiple, according to data provider Bison. It’s unclear when the firm will launch its next fund.

Parthenon “has been slow to draw down” its fourth fund, one placement agent said. Marketing for Fund V is “more likely out a year from now,” the source said.

Executives for Lovell and Aquiline declined comment. LLR and Lightyear couldn’t be reached for comment.