Information on the Target

Ultimus Fund Solutions ("Ultimus") is a premier independent provider of fund administration services tailored for investment advisers. The Company offers a diverse array of solutions, including fund accounting, middle office support, and investor services designed for the launching and servicing of registered funds, private funds, and public plans. Ultimus serves over 450 clients responsible for managing approximately $600 billion in assets across more than 2,100 funds. Notably, Ultimus is recognized for its innovative technology capabilities, highly automated processes, and unwavering commitment to delivering superior service and customized solutions.

Industry Overview in the Target’s Specific Country

In the United States, the asset management industry is experiencing significant growth and transformation driven by advancements in technology, changing regulatory environments, and increasing consumer demands for transparency and performance. As investment managers seek to differentiate themselves, there is a growing demand for innovative solutions that can streamline operations and enhance client satisfaction.

The fund administration sector plays a crucial role in this industry, as companies like Ultimus provide essential support to investment advisers through the administration of funds, compliance monitoring, and reporting. The industry's rapid evolution continues to create opportunities for outsized growth, as practitioners look to integrate technology into their service offerings and improve operational efficiencies.

Moreover, the shift towards alternative investments and retail alternatives has presented increased complexity in fund administration, requiring firms to adapt and develop specialized expertise. Ultimus’s focus on these areas further solidifies its market leadership as it caters to the sophisticated needs of financial advisers and their clients.

The competitive landscape features an array of established players alongside emerging startups, all vying for market share in a lucrative environment. An increasing number of advisers are recognizing the value of partnering with robust fund solutions providers to ensure they can navigate these complexities effectively and maintain competitiveness. This trend is expected to continue, which bodes well for companies like Ultimus positioned at the forefront of the asset management sector.

The Rationale Behind the Deal

The acquisition of Ultimus Fund Solutions by GTCR and Stone Point Capital underscores the strong alignment between these leading private equity firms and Ultimus's vision for growth and innovation. The partnership is designed to leverage GTCR and Stone Point’s expertise and resources, allowing Ultimus to enhance its product offerings and operational capabilities significantly.

By collaborating with these firms, Ultimus aims to accelerate its growth trajectory and continue building its reputation as a trusted partner in fund administration, particularly in complex areas such as retail alternatives. This deal positions Ultimus to capitalize on emerging trends within the asset management industry while upholding its commitment to delivering exceptional service to its clients.

Information about the Investor

GTCR, founded in 1980, is a distinguished private equity firm recognized for pioneering The Leaders Strategy™, which focuses on forming partnerships with management leaders in core sectors to identify, acquire, and develop market-leading companies through organic growth and strategic acquisitions. With a history of investing over $30 billion in more than 290 companies, GTCR currently manages approximately $50 billion in equity capital and is particularly active in key sectors such as Business & Consumer Services, Financial Services & Technology, Healthcare, and Technology, Media & Telecommunications.

Stone Point Capital, an investment firm managing over $65 billion in assets, specializes in the financial services industry and related sectors. The firm invests in alternative asset classes, including private equity through its Trident Funds, and provides dedicated financing solutions through Stone Point Capital Markets. Stone Point’s deep industry expertise and extensive network position it well to support Ultimus in its strategic growth initiatives.

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This partnership between Ultimus Fund Solutions, GTCR, and Stone Point Capital presents a compelling investment opportunity. Given Ultimus's established market presence, innovative technology, and commitment to tailored client services, it is well-positioned to thrive in a rapidly evolving asset management landscape. The combination of resources and expertise from GTCR and Stone Point will likely enhance Ultimus's capabilities, enabling it to capitalize on emerging market opportunities effectively.

The increasing demand for alternative investments and sophisticated fund administration services further supports the case for this acquisition. As more advisers seek comprehensive solutions that aid in operational efficiencies and regulatory compliance, Ultimus’s offerings will resonate in the marketplace, contributing to its growth potential.

Moreover, with the backing of two prominent private equity firms, Ultimus is expected to accelerate its investment in technology and service innovation. This strategic focus will foster long-term sustainability and competitive advantages, ensuring that Ultimus remains a leader in the fund administration sector.

In conclusion, this deal represents a significant milestone in Ultimus's journey and illustrates the confidence that GTCR and Stone Point have in the Company’s leadership and growth trajectory. As the asset management industry continues to evolve, this partnership is likely to yield substantial returns for investors while delivering value-driven solutions to clients.

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