Parthenon holds off on Millennium Trust sale for dividend

The long-expected sale of Millennium Trust Co isn’t happening just yet, according to three sources.

Millennium Trust is currently pursuing a dividend recap in lieu of a sale, people said. The Oak Brook, Illinois, company is taking on more debt to fund the payout to its shareholders, which include majority owner Parthenon Capital Partners, two sources said.

Madison Capital Funding, a Chicago lender, is lead arranger of the dividend recap, people said.

How much Parthenon will receive in the distribution is unclear. The credit facility is likely north of $300 million, one of the sources said.

Millennium provides alternative custody solutions to institutions, advisers and individuals. The company had 623,000 client accounts under administration and $23.9 billion in total assets under custody as of Sept. 17, its website said.

In December, Millennium bought InspiraFS Inc, which provides record-keeping services for IRAs.

Parthenon has owned Millennium for two years, buying a majority of the company in December 2015. The firm paid $150 million for the company, Buyouts reported. In February 2017, after a little more than a year of ownership, Parthenon put Millennium up for sale. The firm was seeking $300 million to $400 million, Buyouts said. The auction was called off, however, after bids came in below expectations, sources said.

Millennium was expected to come to market in 2018, sources said. “The earliest Parthenon would consider selling [Millennium Trust] is the end of the year,” one banker said.

Parthenon is currently investing out of its fifth flagship fund, which closed in 2016 at its $1 billion hard cap.

The middle-market firm scored an impressive exit with its sale of Cayan in late 2017. TSYS is buying the payment processor for $1.05 billion. Parthenon was expected to make 15x its money with the sale of Cayan, Buyouts reported.

Millennium Trust and Parthenon could not be reached for comment. Executives for Madison Capital declined comment.

Action Item: Contact Gary Anetsberger, Millennium’s CEO, +1 630-368-5600

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