Lightyear Capital and PSP Investments Announce Sale of Advisor Group to Reverence Capital Partners
New York, NY – Lightyear Capital LLC ("Lightyear"), a New York-based private equity firm focused on financial services investing, announced today that investment funds affiliated with Lightyear and the Public Sector Pension Investment Board (“PSP Investments”), one of Canada’s largest pension investment managers, have signed a definitive agreement to sell Advisor Group, Inc. (“Advisor Group”) to Reverence Capital Partners. The transaction is expected to close in the third quarter of 2019, subject to regulatory approvals and other customary closing conditions, and financial terms were not disclosed. Lightyear and PSP Investments will continue to own minority stakes in the business.
Lightyear and PSP Investments acquired Advisor Group from AIG in May 2016. Since that time, client assets under administration have grown from $157 billion at the time of purchase to $268 billion today. Over the same period of time, Advisor Group has grown from 5,200 financial advisors to more than 7,000 financial advisors, which has been driven by strong recruiting results as well as several strategic acquisitions, including Capital One Investing, Signator Investors, and Questar Capital Corporation.
"Since our acquisition of Advisor Group from AIG in 2016, the company has gone from strength to strength, supported by its talented management team," said Mark F. Vassallo, Managing Partner at Lightyear. "We value the close working relationship we’ve had with the team and look forward to Advisor Group’s continued growth going forward."
"PSP partners with best-in-class private equity investors and management teams. During our joint ownership with Lightyear Capital and under the leadership of Valerie and Jamie, Advisor Group has transformed itself to deliver tremendous performance for its clients and its financial advisors," said Simon Marc, Managing Director and Head of Private Equity at PSP Investments. "We are very pleased to have supported the group in this journey and wish Jamie and his team all the best in the next chapter of growth."
The current management team at Advisor Group will remain in place, with Jamie Price continuing to serve as President & CEO and as a member of the Board of Directors. Additionally, Valerie Brown, currently Executive Chairman, will retire from her executive position. She will remain an investor in the company.
Jamie Price, CEO of Advisor Group, said, "We are excited about the next chapter of growth, with our unwavering commitment to service, innovation and delivery for our clients as we partner with Reverence Capital Partners. We have the strongest financial advisor network in the country and look forward to expanding our footprint. I want to thank Mark Vassallo and the team at Lightyear and PSP for their invaluable support and advice as investors and Board members."
Valerie Brown, Executive Chairman of the Board of Advisor Group, stated, "The partnership with Lightyear and PSP has been exceptional and we appreciate the commitment of both capital and experience over the past few years."
Barclays Capital Inc. acted as lead financial advisor to the Company. RBC Capital Markets, LLC and SunTrust Robinson Humphrey, Inc. also provided financial advice to the Company. Simpson Thacher & Bartlett LLP acted as legal counsel to the Company. Kirkland & Ellis LLP acted as legal counsel to Reverence Capital in connection with the transaction.
About Lightyear Capital LLC
Founded in 2000, Lightyear is a financial services-focused private equity firm based in New York. Through its affiliated private equity funds, Lightyear makes primarily control investments in North America-based, middle-market companies across the financial services spectrum, including financial technology, asset and wealth management, healthcare financial services, insurance and insurance services, payments and processing, and specialty finance. Lightyear brings focus and discipline to its investment process, as well as operating, transaction and strategic management experience, along with significant contacts and resources beyond capital. For more information, please visit www.lycap.com
About PSP Investments
The Public Sector Pension Investment Board (PSP Investments) is one of Canada’s largest pension investment managers with CAD$158.9 billion of net assets as of September 30, 2018. It manages a diversified global portfolio of investments in public financial markets, private equity, real estate, infrastructure, natural resources and private debt. Established in 1999, PSP Investments manages net contributions to the pension funds of the federal Public Service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force. Headquartered in Ottawa, PSP Investments has its principal business office in Montreal and offices in New York, London and Hong Kong. For more information, visit investpsp.com
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