Middle market private equity shop LLR Partners has made an investment in Ultimus Fund Solutions, LLC, a Cincinnati, Ohio-based independent provider of fund accounting, administration, distribution, transfer agent and shareholder services to the mutual fund industry.

Terms of the deal were undisclosed. Park Sutton Advisors served as the advisor to Ultimus in the deal.

Co-founders Bob Dorsey and Mark Seger will maintain control of the company, according to a press release. According to LLR’s Website, this is the firm’s first foray into the mutual fund servicing space. 

Jim Ashton, former chief executive of the financial systems division of SunGard Data Systems Inc.; Mitchell Hollin, a partner at LLR Partners; and Michael Bishof, chief executive of Independence Capital Partners, will join the Ultimus Board of Directors.

Dorsey told Money Management Executive that his firm was looking for a financial buyer to buy out the firm's two angel investors, which each owned 12.5% of the firm, and his partner John Splain, who owned 25% of the firm. He also said that the firm was looking for a partner and not just another financial buyer with a short-term horizon, making LLR a good fit for the firm.

"The folks at LLR really understood the mutual fund servicing and asset management busiensses," he said. "We like and want to stay in this busienss and they understood what we were looking for." 

Going forward, Dorsey said the firm will use the new influx of capital to grow its existing business lines, incluing the launch of the Ultimus Managers Trust, which is slated to debut sometime in Q3.   

 

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