Rosemont Investment Group sells its minority stake in investment advisory firm Clearstead to Flexpoint Ford.
Terms of the deal, which is expected to be finalized in mid-December, are not being disclosed, said Brad Mook, managing director and head of due diligence, financial modeling and research at the capital manager. Rosemont investment, during a telephone interview.
Rosemont, which currently owns 31.4% of Clearstead, initially invested in the company in 2017 as part of its Rosemont Partners III fund, Mook said.
The investment was part of an effort to recapitalize the consultant, then known as Hartland & Co., to provide liquidity to company founder Thomas Hartland, expand the company’s shareholding and provide the company some support and support in the future, Mr. Mook mentioned.
The sale of its stake by Rosemont to private equity firm Flexpoint was driven by Clearstead’s need for more growth capital, Mook said. The agreement to sell the stake was necessary because the investment period of the Rosemont fund has expired.
Mr. Mook noted that Rosemont has changed its investment model towards permanent capital.
As of December 31, Clearstead had $ 26 billion in assets under counseling.
David C. Fulton Jr., president and CEO of Clearstead, and officials of Flexpoint, could not immediately be reached for further information.