TA’s NorthStar puts Gemini up for sale

NorthStar Financial Services Group, a portfolio company of TA Associates, has put Gemini up for sale, four sources said.

How much NorthStar is seeking is unclear.

Gemini is NorthStar’s largest unit with more than $67 billion under administration. It provides fund services, including portfolio administration and accounting, investor servicing tools, compliance programs and tax guidance.

Raymond James is advising on the Gemini process, sources said.

Consolidating buyers like ALPS, SEI Investments Co, Ultimus Fund Services and Foreside Financial Group could be interested, people said. Foreside is a portfolio company of Lovell Minnick Partners, which also used to own ALPS.

NorthStar is the Omaha holding company providing tech and other services for wealth managers and asset managers.

Orion, a provider of portfolio accounting, is considered the jewel of NorthStar’s companies, sources said. Other units include CLS Investments, an asset manager; Blue Giant, which offers Edgar conversion and print services; and Northern Lights fund distribution.

NorthStar has more than $750 billion in assets under management and administration as of May 31. It employs more than 950.

TA acquired a majority of NorthStar in April 2015. At the time, North Star had $300 billion in AUM.

Earlier this year, NorthStar agreed to buy FTJ FundChoice, which supplies back-office services like reconciliation and account administration. PitchBook valued the FTJ sale at $330 million.

TA, Boston, has been active recently. In August, the firm sold ProCare to Warburg Pincus for $550 million, Buyouts reported. TA, along with Luminate Capital Partners, invested in Financial Information Technologies that month. The growth firm in July invested in Prudent Corporate Advisory Services, ODEALIM and Compusoft.

TA and NorthStar could not be reached for comment.

Action Item: More on NorthStar: www.nstar-financial.com/