Boston-based private equity firm TA Associates has acquired a 54.4% stake in Stadion Money Management, an investment management firm with roughly $6.7 billion under management. Terms of the deal were not released. Formed in 1991, Stadion provides investment management services via mutual funds, separate accounts and retirement accounts.
TA Associates, a leading growth private equity firm, today announced that certain of its private equity funds (collectively “TA Associates”) have signed a definitive agreement to acquire a 54.4% interest in Stadion Money Management, LLC, a rapidly growing investment management firm. In connection with the closing of TA Associates’ investment, a new equity incentive plan will be created to broaden ownership among Stadion’s key investment and operational personnel. Terms of the investment were not disclosed.
Founded in 1991, Stadion offers investment management services via mutual funds, separate accounts and retirement accounts. Stadion employs an active money management approach, utilizing data-driven proprietary models to make asset allocation changes based on changing market conditions. The firm seeks to invest in top intermediate term performers when market conditions appear favorable, with the aim of delivering satisfying results with less volatility than traditional buy-and-hold strategies. Stadion is a portfolio strategist on the Genworth Financial Wealth Management platform, and its retirement account management services are bundled with the plans of several national retirement plan providers, including Lincoln Financial, Mutual of Omaha and Guardian. As of March 31, 2011, Stadion had approximately $6.7 billion in assets under management.
“We’re delighted to welcome TA Associates as the first institutional investor in Stadion,” said Tim Chapman, CEO, Stadion Money Management. “TA has a well-earned reputation for being a knowledgeable financial services investor with a long-standing management-friendly approach. We are confident that a partnership with TA will allow us to accelerate growth while maintaining the Stadion culture and the disciplined risk-averse investment approach that have been our hallmark.”
“Stadion is precisely the type of differentiated, profitable, high growth company in which TA seeks to invest,” said M. Roy Burns, a Principal at TA Associates. “Stadion’s early embrace of tactical asset allocation investment strategies has positioned it as a leader among its peers. With its unique approach to managing money, its highly-rated mutual funds, and its partnerships with some of the country’s leading financial services providers, Stadion is well-positioned for continued growth.”
“Among other attributes, we find TA’s wealth of experience in the asset management industry quite attractive,” said Jud Doherty, President and CFO, Stadion Money Management. “We will leverage TA’s financial support, strategic guidance and significant network of contacts to continue building value in Stadion for our clients, employees and shareholders.”
“We believe a growing number of advisors and their clients are seeking investment opportunities that reduce volatility and protect principal, while preserving upside,” said Roger B. Kafker, a Managing Director at TA Associates. “This focus on real rates of return should prove beneficial over the long run to Stadion, which has demonstrated success in implementing precisely this type of investment strategy. We look forward to working with management to further solidify the firm’s position as a differentiated manager utilizing a variety of ETFs to implement a conservative tactical approach to asset allocation.”
TA Associates has more than four decades of investing experience, focusing on profitable growth companies. The firm is one of the most experienced investors in investment management companies, having invested in 14 firms over the last 22 years. TA’s investments in the asset management industry include Affiliated Managers Group, AIM Management Group (Invesco Ltd.), Evanston Capital Management, First Eagle Investment Management, Jupiter Fund Management, K2 Advisors, Numeric Investors and Thomson Advisory Group (PIMCO).
In connection with the investment, Roy Burns and Roger Kafker will join the company’s Board of Directors. Goodwin Procter LLP provided legal counsel and Deloitte LLP provided accounting services to TA Associates. Chamberlain, Hrdlicka, White, Williams & Martin LLP served as legal counsel and Silver Lane Advisors provided financial advisory services to Stadion.
Since 1991, Stadion Money Management has been managing investors’ “serious money” for important long-term goals like retirement, education and future family legacy. Stadion Money Management offers separate account management services, proprietary mutual funds, and retirement account investment advisory services. For more information, please visit www.stadionmoney.com.
About TA Associates
Founded in 1968, TA Associates is one of the largest and most experienced global private equity firms. The firm has invested in over 400 companies and manages more than $16 billion in capital. With offices in Boston, London, Menlo Park and Mumbai, TA Associates leads buyouts and minority recapitalizations of profitable growth companies in the technology, financial services, business services, healthcare and consumer industries. More information about TA Associates can be found at www.ta.com.