Fund administrators Ultimus Fund Solutions and Gemini have agreed to merge after both companies entered into deal to be acquired by private equity firm GTCR.
The combined company, which will operate as Ultimus Fund Solutions only, will hold approximately $150 billion of assets under administration, service over 840 funds, and provide a range of middle- and back-office services to mutual fund and alternative investment managers.
Ultimus President Gary Tenkman will become chief executive officer (CEO) of the combined business, while Gemini CEO Kevin Wolf will continue in a senior role reporting to Tenkman.
Following the closing, GTCR will be the majority shareholder in the joint company.
“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,” said Tenkman.
The newly-created fund administrator will look to compete with larger fund services giants such as SS&C Technologies and Apex Group that have dominated the industry through a wave of acquisitive moves.
Ultimus most recently took over Woodfield Fund Administration, expanding its private equity fund services.
A joint statement by Ultimus founders Bob Dorsey and Mark Seger, advocated 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,” the statement added.
Collin Roche, managing director for GTCR, added its intentions for the joint company is to “continue to invest heavily in technology and further expand product offerings and solutions for current and future clients.”
The deal is expected to close in the first quarter of 2019, following regulatory approvals.