Portland financial compliance firm to merge with New York peer
File Photo / Tim Greenway
David Whitaker, former president of Foreside Financial Group, is now global services leader at ACA.
Portland-based Foreside Financial Group LLC, a provider of distribution and compliance services to the asset management industry, is set to merge with New York-based peer ACA Group under an agreement announced Wednesday. Terms were not disclosed.
The combined entity will employ 1,100 people serving more than 5,000 clients from 16 offices worldwide, according to a news release.
The deal comes four months after Foreside Financial changed hands, with San Francisco-based private equity firm Genstar Capital buying a majority stake from Lovell Minnick Partners, of Radnor, Pa.
Pending regulatory approvals and closing conditions, the transaction is expected to close in the first half of 2022.
Genstar would then become the majority owner of the combined business, since it has already acquired a controlling interest in ACA from Starr Investment Holdings LLC.
ACA Group CEO Shvetank Shah would serve in the same role at the new company. A spokeswoman for Foreside told Mainebiz that the leadership teams from both ACA and Foreside will remain intact, with specific roles to be defined in coming months.
"Partnering with Foreside and Genstar will be a game changer in our industry. Both firms share the same commitment to create a category leader in a rapidly evolving space," Shah said in Wednesday's announcement. "Foreside and ACA have earned outstanding reputations and our aligned vision, client-centric focus, and commitment to innovation will help our customers navigate their most complex GRC challenges.”
Rich Berthy, founder and CEO of Foreside, said the company is excited about the opportunity.
"Over the past 15 years Foreside has built its reputation as an expert provider of customized compliance and technology solutions and services to the investment management industry," he said. "The combined company will have the global resources to continue to develop innovative products with a single vision focused on providing the best client advice.”
Jefferies LLC served as exclusive financial advisor to ACA, while Raymond James & Associates, Inc. provided financial advice to Genstar and Foreside. ACA's legal counsel was Kirkland & Ellis LLP, while Genstar and Foreside were advised by Willkie Farr & Gallagher LLP.
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