The Carlyle Group agreed to acquire a majority stake in Conifer Financial Services. It did not disclose the terms of the agreement.
The Carlyle Group and Conifer expect to close the transaction in the second quarter of this year. The deal is still subject to customary closing conditions and regulatory approvals.
GrizzlyRock Value Partners was up 16.6% for the first quarter, compared to the S&P 500's 5.77% gain and the Russell 2000's 12.44% return. GrizzlyRock's long return was 22.3% gross, while its short return was -2.9% gross. Compared to the Russell 2000, the fund's long portfolio delivered alpha of 10.8%, while its short portfolio delivered alpha Read More
Carlyle Global Financial Services Partners II will provide the capital for the investment in Conifer. The fund invests in management buyouts, growth capital opportunities and strategic minority investments in financial services firms globally.
Olivier Sarkozy, head of Global Financial Services Fund at Carlyle Group said, “Conifer’s mix of fund administration, middle- and back-office services, and outsourced trading platform provides value to their clients far beyond what is typical in the sector. We look forward to working with Conifer as it continues to expand Conifer’s leadership in innovative fund and asset services.”
Keith Taylor, managing director Global Financial Services Fund at Carlyle Group, added that Conifer’s technology advantage enables the firm to deliver a different set of services to help clients thrive in a dynamic environment.
Conifer is one of the top five fund administrators worldwide
Conifer will still own a minority interest, and its senior management will continue to manage its business. The firm has a broad experience in offering front-to-back capabilities across all asset classes for hedge funds, endowments, foundations, fund of funds, family offices, and pension funds.
Conifer has more than 200 clients around the world representing over $100 billion of combined assets under administration (AUA). It is one of the top fund administrators worldwide.
Carlyle Group will support Conifer’s new phase of development
The Carlyle Group said the transaction is a result of the evolution and growth of Conifer Financial Services and intends to support its new phase of development.
The Carlyle Group noted that Conifer F is a fast-growing fund administration platform. It achieved approximately 150% growth in AUA over the past three years due to its superior client service offering, flexible technology, and turn-key, as well as customized solutions.
Conifer CEO Jack McDonald said, “I’m excited to partner with Carlyle, a widely recognized world-class investor. Our clients and employees will benefit significantly from this partnership, which will enable us to fulfill our vision of becoming the leading, independent asset servicing business.
McDonald added that Carlyle Group’s incomparable global platform provides a solid foundation for Conifer’s continued growth and development. He will continue to lead the firm after the deal.