TA Associates so far has made 5x its investment in Orion amid the company’s merger with Genstar’s Brinker Capital, a source familiar with the matter told PE Hub.
TA-backed Orion, the tech-enabled provider of fiduciary framework, and Brinker Capital, the Genstar Capital-backed investment management company, completed their merger on September 25.
The new company will operate under the name Orion Advisor Solutions and will be led by Erin Clarke, current CEO of Orion, the firms said.
Orion, based in Omaha, Nebraska, enables financial advisors to prospect, plan, invest and achieve within a single, connected, technology-driven experience.
Combined, the companies plan to leverage their complementary strengths to drive the entire fiduciary process with planning tools, guided or open-architecture investment solutions and behavioral insights. These tools are intended to power organic advisor growth through client satisfaction, according to the company’s CEO Erin Clarke.
As part of the deal, TA has sold a piece of its Orion stake to Genstar, realizing over $1 billion in capital gains, the source told PE Hub. That translates into 5x the firm’s initial investment.
TA and Genstar have each invested $600 million in new capital to become equal shareholders of the combined company, the source said. The management team also rolled over a sizable equity consideration, the person added.
Orion Advisor Solutions is now set to generate approximately $300 million in revenue and expects to grow at a high-teens pace organically and through add-ons, according to the firms’ announcements.
TA Associates declined to comment for the story.
Action Item: See TA Associates’ recent form ADV.