GTCR, a US private equity firm, has entered into an agreement to separately acquire Ultimus Fund Solutions and Gemini Companies.
The combined company, which will operate as Ultimus Fund Solutions, will offer full-service fund administration, accounting and registration solutions to traditional and alternative fund managers.
Separately, Ultimus and Gemini both offer customised middle and back-office solutions that help fund managers and investors.
As part of this transaction, Gary Tenkman, president of Ultimus will be appointed as CEO of the combined business.
Kevin Hesselbirg, Gemini Companies CEO, will join the board of the company and will also serve as an advisor to senior management.
Kevin Wolf, president of Gemini Companies will continue in a senior role reporting to Tenkman.
Ultimus founders Bob Dorsey and Mark Seger will remain active as vice chairmen and continue to support the business and its customers.
The closing of the acquisition is expected to be in the first quarter of 2019 after regulatory approval.
Commenting on the acquisition, Tenkman, said: “As a united, larger independent institutional strength firm, we will be able to deliver enhanced scale and deeper capabilities with boutique service levels to our combined client base. I look forward to working with the Gemini team to jointly advance our innovative solutions.”
Hesselbirg commented: “I am a strong believer in the merits of this combination, bringing these two great companies together will result in improved investment, opportunity and innovation benefiting our mutual clients and employees.”
He added: “This combination represents the next phase in our mission to enable entrepreneurial managers and advisors deliver new strategies and products to market supported by technology-driven solutions and world-class service.”
Dorsey and Seger, issued a joint statement, stating: “We believe the transaction is an evolution for Ultimus.”
“We have great regard for the Gemini organisation and look forward to working with them as the increased scale and broadened product capabilities of the combined company will enable us to even further enhance the industry-leading customer service that has been a cornerstone of Ultimus since its founding.”
Collin Roche, managing director at GTCR, explained: “We are excited to support the combination of Ultimus and Gemini under Tenkman’s leadership. We believe each company brings expertise and competencies that are distinctive in the market and are highly complementary to one another.”
He added: “Together, they represent a leading fund administrator, with significant technological capabilities and a strong client service offering. Our plans going forward are to continue to invest heavily in technology and further expand product offerings and solutions for current and future clients.”
