Centerbridge to invest US$216 million in Focus Financial
Today, Focus Financial Partners LLC announced that it entered a definitive deal with Centerbridge Capital Partners II for an investment worth US$216 million. Focus was the biggest alliance of independent wealth administration firms. It would retain a majority of shares in the corporation after the expected completion of the deal in the third quarter. Summit Partners and Polaris Ventures would remain as stockholders in the company.
Focus was established in 2006 with US$3.5 in client assets. Within the past year, Focus was able to execute 10 deals and its assets rose by US$14 billion. Currently, Focus was considered the most profitable business in the industry with roughly US$62 billion in client assets and US$250 million in profits.
"As a market leader, Focus is excited about Centerbridge's investment in the company as it further validates our model and the growth potential of our company and the industry as a whole. Most importantly, Centerbridge's investment creates liquidity for many of our shareholders at an attractive return," Focus' founder and CEO, Rudy Adolf, said.
"Focus is a proven leader in the independent wealth management industry. Consistent with other investments Centerbridge has made in market-leading businesses and industry consolidators across various industries, Focus has a strong track record, first-class management team, and a well-developed infrastructure which position it for further expansion," Centerbridge's senior managing director, Matthew Kabaker, stated.
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