Genworth Financial, a Richmond, Va., based insurance company, announced that it plans to sell its wealth management arm to a pair of private equity firms, Aquiline Capital Partners and Genstar Capital, for about $412.5 million.
The deal, announced Wednesday, is subject to closing conditions and regulatory approval. It is expected to close in the second half of this year.
According to Aquiline, the sale would include both components of Genworth Wealth, Genworth Financial Wealth Management, its investment management and consulting platform, and Altegris, which offers alternative investment products and services.
Together, the two businesses make up a leading wealth management platform and alternative investments solution provider, Aquiline said in a statement. GFWM primarily provides a growing universe of independent financial advisors with comprehensive support across every phase of their practice, helping them to meet clients wealth management and investment needs. Altegris offers a suite of liquid alternative mutual funds, a wide platform of hedge funds and separately managed accounts backed by a deep commitment to research.
Jean-Pierre Conte, a managing director and chairman of Genstar, said in a statement, This acquisition, in partnership with Aquiline, is a demonstration of our continued focus of investing in targeted, attractive segments within the financial services sector.
GFWM and Altegris are each well-positioned to meet the growing needs of independent financial advisors and increased demand from retail investors for access to alternative products, added Tony Salewski, a principal at Genstar. Aquiline and Genstar will leverage our collective investment experience to help the management teams capitalize on these trends and grow their businesses.