The Carlyle Group will acquire a majority stake in asset services firm Conifer Financial Services, in a deal expected to close in the second quarter.
Conifer's senior management will continue to lead the business, and will own a significant minority stake in the company. Senior management has multiyear employment agreements in place, said a spokeswoman for Conifer in an e-mail.
The fund administration firm provides services for all asset classes, and for hedge funds, pension funds, endowments and foundations, as well as other clients. It has more than $100 billion in assets under administration.
The size of the stake and terms of the deal were not disclosed.
The Conifer spokeswoman said that the firm is owned by senior management and silent partners, who also participated in the transaction.
“Fund services are becoming increasingly important to a range of asset owners and managers,” said Keith Taylor, managing director of Carlyle's global financial services fund, in a news release from the firm. “Market participants are working to gain better control over their data, operations and regulatory requirements.”
The investment will be funded from Carlyle Global Financial Services Partners II, which invests in management buyouts, growth capital opportunities and strategic minority investments in financial services firms. The release said this marks the fifth investment by the fund.
A spokeswoman for Carlyle could not be reached for comment by press time.