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Parthenon sells majority of Millennium Trust for $1.6 bln to $1.8 bln

  • Parthenon bought Millennium Trust in 2015 for $150 mln
  • Parthenon Fund IV invested in Millennium
  • Parthenon to retain minority of Millennium

Good things come to those who wait.

Just ask Parthenon Capital Partners, which is selling part of its stake in Millennium Trust Co for a mammoth price.

Abry Partners said Friday, Jan. 4 that it agreed to make a significant investment in Millennium. Terms weren’t announced. Parthenon is retaining a minority stake, the statement said.

Abry’s buy of a majority of Millennium Trust is valued at $1.6 billion to $1.8 billion, a source said.

“Stunning,” one GP said of the result.

The sale confirms a Buyouts report from August that said Parthenon was entertaining offers for Millennium.

Founded in 2000, Millennium provides alternative custody solutions to institutions, advisers and individuals. The Oak Brook, Illinois, company has about $26 billion in assets under custody and serves more than 1.1 million individual accounts.

Parthenon’s investment in Millennium dates to 2015 when it acquired a majority of the company. Millennium sold for $150 million, Buyouts said in 2015.

At the time the process was one of the most coveted, with Millennium receiving more than 20 bids, Buyouts said. Firms including Lightyear Capital, Aquiline Capital Partners, LLR Partners and Lovell Minnick Partners made offers for Millennium.

Parthenon has been expected to sell Millennium ever since. The PE firm was expected to put Millennium on the block in 2017 and then early last year. Instead, Parthenon opted for a dividend in January 2018, which PitchBook valued at $487.6 million.

The buyout shop put Millennium Trust up for sale in Q4, a second source said. It hired Brendan Ryan of Raymond James and Dan Daul of William Blair to advise on the process. Kirkland & Ellis provided legal advice.

Four to five bidders remained in December, a third person said.

“We are happy where we ended up and happy to stay involved,” said Andrew Dodson, a Parthenon managing partner, who declined further comment.

Parthenon used its fourth fund, which closed on $700 million in 2012, to invest in Millennium. The firm is investing out of its fifth flagship fund, which collected $1 billion in 2016.

William Blair declined comment. Executives for Millennium Trust and Raymond James could not be reached for comment.

Action Item: Contact Millennium CEO Gary Anetsberger at +1 630-368-5600.