Kelly said there are various ways Verdence can attract M&A opportunities. One is through its contacts in the M&A space and the investment banking world.
Another way is by hustling to get the word out about what Verdence has to offer.
“It’s spreading the word in terms of what we’re looking for via p.r. and conversations via networking," he said. "We’re not a rollup where we’re looking to buy anyone who has a pulse. The vision of Verdence isn’t to build up this thing in a couple of years and sell it. It’s to create a long-term, multigenerational organization. The ‘who’ is immensely important. So we’ll take our time, talk to a lot of folks, and go with those that fit the description.”
During the due diligence process to find a minority partner, Kelly said the firm talked with various entities, including Park Sutton Advisors (which ultimately advised Verdence on this deal) and Fidelity, which has a custody relationship with Verdence.
He added that Emigrant was recommended by more than one source based on what his firm was looking for in a minority-investment partner—permanent capital and a long-term investment outlook, as well as an outfit with a great reputation and culture that would let Verdence operate the business.
“We got a few recommendations, but Emigrant was on everybody’s short list,” Kelly said.