Portland financial firm unveils 5th acquisition in 2 years
COURTESY / FORESIDE FINANCIAL GROUP
David Whitaker, president of Foreside Financial Group, and Karen Lopez Alvarez, founder and CEO of Capital Markets Compliance, which was acquired by Foreside.
Foreside Financial Group LLC, a Portland-based provider of customized compliance and technology solutions to the investment management industry, is embarking on its fifth acquisition in two years.
A portfolio company of Radnor, Pa.-based private equity firm Lovell Minnick Partners LLC, Foreside said Tuesday that it has agreed to acquire Capital Markets Compliance of Atlanta for an undisclosed amount.
Capital Markets Compliance, founded in 1999, provides regulatory guidance to financial services firms that offer securities products through full-service brokerage operations, investment banking and investment advisory services.
As part of the acquisition, CMC’s managing team of Karen Lopez Alvarez and Rick Alvarez, along with 13 employees, will join Foreside.
Including the new staff joining Foreside through the acquisition, the Portland-based firm will have a total workforce of 280 people.
Foreside did not use any external advisors on the transaction, and expects the deal to close on Feb. 1, followed by several months of integration, a spokesman told Mainebiz.
“We are proud to demonstrate our continued growth with the acquisition of CMC,” Foreside President David Whitaker said in Tuesday's news release.
Specifically, he said that that Atlanta firm's highly regarded and successful practice will complement Foreside's consulting businesses, expand its accounting and financial support capabilities and augment existing tech solutions "to provide a consistent quality of client service and industry expertise that we continue to enhance through these types of acquisitions."
Karen Lopez Alvarez added that while Capital Markets Compliance had received other acquisition approaches and had been wanting to scale the business, it was seeking a partner with the right fit, depth of expertise and industry knowledge.
“We feel we’ve found the perfect partner in Foreside whose customized service model and technology matches ours, and whose operational strength will help alleviate the day-to-day responsibilities and allow us to better focus on growing the business," she said.
The deal comes less than three months after Foreside unveiled the acquisition of Integrated Compliance Solutions Group, a Hartford, Conn,.-based regulatory compliance services firm, and amid expectations of a slow but steady pickup in deal activity involving Maine firms.
Foreside's previous acquisitions include Quasar Distributors, U.S. Bancorp’s mutual fund and exchange-traded funds, distribution business, in March 2020; Compliance Advisory Services, a leading regional compliance firm, in October 2019; and NCS Regulatory Compliance, a comprehensive provider of outsourced compliance and regulatory services, in January 2019.
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