Two private equity firms have teamed up to buy their way into the alternative mutual fund space.

New York-based Aquiline Capital Partners and San Francisco-based Genstar Capital have agreed to acquire Genworth Wealth Management from Genworth Financial for $412.5 million. The sale includes both of Genworth Wealth Management’s businesses: Genworth Financial Wealth Management, an investment management and consulting platform, and Altegris, a provider of alternative mutual funds, hedge funds and separately managed accounts.

Aquiline and Genstar were advised by Deutsche Bank. Debt financing for the deal was provided by Credit Suisse. The deal is expected to close in the second half of 2013.

“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,” stated Tony Salewski, a principal of Genstar. “Aquiline and Genstar will leverage our collective investment experience to help the management teams capitalize on these trends and grow their businesses.”

“We appreciate that our new strategic partners, Aquiline and Genstar, recognize the strength of our operations, and we are excited to invest alongside them in Altegris as we build a stronger foundation for our future,” stated Jon Sundt, chief executive officer of Altegris.

 

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