Aqualine Capital Partners and Genstar Capital will acquire a majority stake in Genworth Wealth Management from NYSE-listed Genworth Financial for $412.5 million.
Genworth Wealth Management includes both the investment management and consulting business Genworth Financial Management and Altegris, a mutual funds and hedge fund provider.
“There is an increase in demand by individual investors for institutional quality investment solutions and those are the types of services and products that the Genworth Financial Management side of the business provides,” principal at Genstar Anthony Salewski told Private Equity International. “Altegris is at the crosshairs of the fast-growing end of the market, where an increasing number of individuals are looking for exposures to alternative products.”
Aquiline and Genstar will each own an equal stake in Genworth. Genstar is investing in the business primarily from its Genstar Capital Partners VI fund, which closed in January on $912 million. The firm still has dry powder remaining in Fund V, according to its 2012 year in review.
The transaction marks the third investment from Fund VI for San Francisco-based Genstar, which acquired retail insurance brokerage Acrisure last month and specialty clinical research company eResearch Technology for $400 million last April.
Aquiline was unavailable for comment at press time.