Centerbridge invests $216m in Focus Financial

The deal is expected to close in the third quarter and Summit Partners and Polaris Venture Partners will retain their stakes, despite previously selling portions.

Centerbridge Capital Partners II has invested $216 million in Summit Partners and Polaris Venture Partners-baked Focus Financial Partners—one of the largest partnerships of independent wealth management firms—according to a statement from Focus.
“This investment adds to our deep pool of available capital as we continue to work closely with our partners firms to support their own growth initiatives,” Rudy Adolf, founder and chief executive officer of Focus said in the statement. “Most importantly, Centerbridge’s investment creates liquidity for many of our shareholders at an attractive return.”

New-York based Focus anticipates the transaction will close at the end of the third quarter, the statement read. Upon finalisation, Focus’ partners, management and early investors, including Summit and Polaris, will retain a majority stake.
Summit and Polaris have reportedly sold a portion of their ownership stakes, a source with knowledge of the situation told Private Equity International. Both firms declined to comment.
Centerbridge Capital Partners II, a 2010 vintage, raised $4.4 billion, according to PEI’s Research and Analytics Division. The fund includes commitments from HarbourVest Partners, the Oregon Investment Council and a $150 million pledge from Massachusetts Pension Reserves Investment Management Board. Centerbridge has about $20 billion in capital under management as of May, the statement read.

Focus, which was founded in 2006, provides wealth management, benefit and investment consulting advice to individuals and institutions, according to the statement. It manages about $62 billion of clients’ assets and has over $250 million in revenue.