The Carlyle Group Acquires Majority Stake in Conifer

Alternatives manager The Carlyle Group has bought a majority stake in independent asset services firm Conifer Financial Services.

A press release says the deal represents the next phase of “growth and evolution” for Conifer, which was created from the merger of Conifer Group and Vastardis Capital Services in May 2014. The firm currently serves $100 billion of AuA across hedge funds, pensions, endowments, foundations, funds of funds and family offices, as well as private equity and venture capital and is said to have grown approximately 150% in AuA over the past three years.

Conifer’s CEO Jack McDonald and other senior management will continue to lead the business and own a significant majority interest in the company.

“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,” says McDonald.

Olivier Sarkozy, head of Carlyle’s Global Financial Services Fund, says: “Conifer’s mix of fund administration, middle- and back-office services, and outsourced trading platform, provides value to their clients far beyond what is typical in the sector.”

Keith Taylor, managing director of Carlyle’s Global Financial Services Fund, says: “Fund services are becoming increasingly important to a range of asset owners and managers. Market participants are working to gain better control over their data, operations and regulatory requirements.”

Carlyle’s Christopher Dodds, Keith Taylor and William Allen will join Jack McDonald and William Vastardis on Conifer’s Board of Directors.

Carlyle’s investment in Conifer comes from Carlyle Global Financial Services Partners II L.P., which invests in management buyouts, growth capital opportunities and strategic minority investments in financial services firms globally.