By Business Wirevia The Motley Fool
Filed under: Investing
Aquiline Capital Partners and Genstar Capital to Acquire Genworth Wealth Management
NEW YORK & SAN FRANCISCO–(BUSINESS WIRE)– Aquiline Capital Partners LLC (“Aquiline”), a New York-based private equity firm investing in the financial services sector, and Genstar Capital, LLC (“Genstar”), a middle market private equity firm based in San Francisco, today announced that they have agreed to acquire Genworth Wealth Management from Genworth Financial, Inc. (NYS: GNW) (“Genworth”) for $412.5 million. The sale by Genworth includes both of Genworth Wealth Management‘s businesses: Genworth Financial Wealth Management (“GFWM“), an investment management and consulting platform, and Altegris, a provider of premier alternative investments.
Together, the two businesses make up a leading wealth management platform and an alternative investment solutions provider. GFWM primarily provides a growing universe of independent financial advisors with comprehensive support across every phase of their practice, helping them to meet clients’ wealth management and investment needs. Altegris offers a suite of liquid alternative mutual funds, a wide platform of hedge funds and separately managed accounts backed by a deep commitment to research. Altegris’ products provide an efficient solution for financial professionals and individuals seeking alternative investments.
Aquiline and Genstar will bring their operational expertise and industry experience to help GFWM and Altegris increase their scale and capabilities. Specifically, Aquiline and Genstar will work with the respective senior management teams to enhance product development and technology offerings at GFWM, and expand distribution channels and launch new alternative products at Altegris. By strengthening the companies’ infrastructures and capital bases, Aquiline and Genstar will create the foundation for ongoing growth and greater market share.
“Genworth Financial Wealth Management and Altegris are market-leading businesses with strong brands, experienced management teams and high growth potential,” said Jeff Greenberg, Chief Executive of Aquiline. “Both businesses provide strategic resources that differentiate them from their competitors in rapidly-growing industries. Together, they form an effective platform for investors. We look forward to working with Genstar to support these companies in their continued development.”
“GFWM and Altegris are each well-positioned to meet the growing needs of independent financial advisors and increased demand from retail investors for access to alternative products,” added Tony Salewski, a Principal of Genstar. “Aquiline and Genstar will leverage our collective investment experience to help the management teams capitalize on these trends and grow their businesses.”
Jean-Pierre L. Conte, Managing Director and Chairman of Genstar, commented: “This acquisition, in partnership with Aquiline, is a demonstration of our continued focus of investing in targeted, attractive segments within the financial services sector.”