Rosemont Investment Group is selling its minority stake in investment consulting firm Clearstead to Flexpoint Ford.
Terms of the deal, which is expected to close in mid-December, are not being disclosed, said Brad Mook, managing director and head of due diligence, financial modeling and research at private equity manager Rosemont, in a phone interview.
Rosemont, which currently owns 31.4% of Clearstead, originally made the investment in the firm in 2017 as part of its Rosemont Partners III fund, Mr. Mook said.
The investment was part of a recapitalization effort by the consultant, then known as Hartland & Co., to provide liquidity to the firm's founder Thomas Hartland, broaden the firm's equity ownership and provide the firm with some support and backing going forward, Mr. Mook said.
Rosemont's sale of its stake to private equity firm Flexpoint was motivated by Clearstead's need for more growth capital, Mr. Mook said. The agreement to sell the stake was necessary because the Rosemont fund's investment period has expired.
Mr. Mook noted Rosemont has changed its investment model toward permanent capital.
As of Dec. 31, Clearstead had $26 billion in assets under advisement.
David C. Fulton Jr., chairman and CEO of Clearstead, and officials at Flexpoint, could not be immediately reached for further information.