Northstar Financial Services Group, a Nebraska-based holding company, is acquiring FTJ FundChoice from private equity firm Seaport Capital, Northstar announced.
FTJ FundChoice will become part of NorthStar Financial’s asset management branch, which includes CLS Investments, also based in Nebraska. TA Associates, an international private equity firm that backs Northstar Financial, is also supporting the acquisition. The terms of the deal were not disclosed.
FTJ FundChoice is a registered investment advisor and turnkey asset management program (TAMP) based in Hebron, Ky., with $10 billion in assets under administration. The acquisition will increase Northstar’s AUA to $690 billion, the company said in a release.
Advisors who use the Orion Communities Platform will be among the first to benefit since FTJ Fund Choice’s managed account capabilities are being integrated into the platform.
"Our affiliation with NorthStar, and its commitment to delivering best-in-class technology and services to its customers, only supports FTJ FundChoice’s plans for aggressive growth and innovation," said FTJ FundChoice’s president and CEO Dean Cook in a statement. "We have a long track record with many of NorthStar’s thousands of clients and hope to extend our growth within that user base, while also deepening and expanding our many relationships beyond the NorthStar footprint."
Northstar said Cook would continue as FTJ FundChoice’s president and CEO. The transaction will close sometime in the second quarter of 2018.
NorthStar Financial Services Group, with more than 890 employees, operates subsidiaries that provide asset management, comprehensive fund services, portfolio accounting, fund distribution and compliance services.
FTJ FundChoice provides advisors with independent asset allocation strategies and back-office services that include trade reconciliation, account administration, fee billing and performance reporting.