Daily News: March 25, 2015

The Carlyle Group Acquires Conifer Financial Services

The Carlyle Group announced it agreed to acquire a majority stake in Conifer Financial Services, an independent asset services firm. Senior management of Conifer will continue to lead the business and own a significant minority interest in the company.

The transaction, terms of which were not disclosed, is expected to close in the second quarter of 2015 subject to customary closing requirements and regulatory approvals.

In May 2014, The Conifer Group, LLC and Vastardis Capital Services Holdings LP merged their respective businesses to create Conifer Financial Services, one of the world’s largest independent asset services providers and outsourced trading platforms.

Jack McDonald, CEO of Conifer, will continue to lead the company. McDonald said, “I’m excited to partner with Carlyle, a widely recognized world-class investor. Our clients and employees will benefit significantly from this partnership, which will enable us to fulfill our vision of becoming the leading, independent asset servicing business. The unparalleled breadth and depth of Carlyle’s global platform will provide a solid foundation for our continued development and growth.”

Capital for Carlyle’s investment will come from Carlyle Global Financial Services Partners II, which invests in management buyouts, growth capital opportunities and strategic minority investments in financial services firms globally. This will be the fifth investment by the fund. Previous investments include Duff & Phelps, DBRS and Edgewood Partners Holdings.

Macquarie Capital and Freeman & Co. served as financial advisors and Morgan, Lewis & Bockius served as legal advisor to Conifer. Duff & Phelps Securities served as financial advisor and Wachtell, Lipton, Rosen & Katz served as legal advisor to Carlyle. Debevoise & Plimpton served as legal advisor to the transaction.