October 16, 2001
PHILADELPHIA, PA, October 16, 2001 – Persimmon Research Partners, Inc. [“Persimmon”] announced that it has closed a $5 million private equity financing from an investor group led by Sands Brothers Venture Capital Funds [“Sands Venture Capital”], an affiliate of Sands Brothers & Co., Ltd., a NYSE member firm. Persimmon’s Internet-based, ADVISORport platform is a private-labeled infrastructure services and technology platform for the rapidly growing fee-based investment consulting industry.
According to Gregory S. Horn, founder and CEO of ADVISORport, this is the first closing of Persimmon’s third round of financing, which is expected to total $9 million.
In addition to Sands Venture Capital, the investor group includes The Schwab Corporation, a leading global financial services firm; Rosemont Investment Partners, LLC, a Philadelphia-area merchant bank that also provided second round financing to Persimmon; AMC Capital, a private equity group headquartered in King of Prussia, PA; TDH, a private venture capital firm based in Radnor, PA; and a number of other existing shareholders.
According to Steven Sands, co-chairman of Sands Venture Capital, “ADVISORport has attracted nearly 70 client companies and close to $1 billion in assets serviced in less than 18 months, and is adding new clients at the rate of more than one a week. ADVISORport is clearly the only online financial services infrastructure provider today that has demonstrated an ability to grow significant assets internally.”
Howard Sterling, chief operating officer of Sands Venture Capital, added, “ADVISORport’s rapid asset growth is especially notable in light of the market’s dramatic volatility in recent months. This new capital infusion will enable ADVISORport to further enhance its value proposition and increase its market dominance.”
ADVISORport’s Horn commented, “The insights and experience of our strategic investor group will provide us with value added above and beyond their capital, as we continue to implement our growth plan. Their support will enable us to remain ahead of the industry curve and deliver a superior solution versus both our off-line and online competition.”
Sands Brothers Venture Capital, an affiliate of Sands Brothers & Co., Ltd., a NYSE member firm, manages four venture funds focused on investing in market-leading late-stage technology companies. Headquartered in New York, and will offices in London, San Francisco and Toronto, Sands Brother & Co., Ltd. specializes in asset management for high net worth individuals as well as securities brokerage with $2 billion under management from 20,000 clients.
Rosemont Investment Partners is a merchant bank focused on providing strategic capital to compelling business opportunities within the asset management industry. Rosemont now manages approximately $35 million for a group of investors including: KBC Bank N.V. (Belgium), Keefe, Bruyette & Woods, Merrill Lynch, the Ohio Bureau of Workers’ Compensation and a number of family offices and investment management industry leaders.
Philadelphia-based ADVISORport is an application service provider (“ASP”) serving independent advisors, independent broker-dealers, bank/trust companies and money management firms. ADVISORport’s online platform fully integrates separate account money managers, mutual fund and hedge fund product solutions with client profiling tools, asset allocation analysis, performance monitoring, rebalancing models and customized proposal and report generation. ADVISORport services accounts representing nearly $1 billion for 70 clients including broker/dealers, banks, trust companies, independent investment advisors and advisory arms of accounting firms.
April 11, 2001
CONSHOHOCKEN, PA, April 11, 2001 – Rosemont Partners I, L.P. announced today that it completed an investment in Philadelphia-based Persimmon Research Partners, Inc. Persimmon provides private labeled infrastructure services to the rapidly growing fee-based investment consulting industry through ADVISORport, an Internet-based platform.
ADVISORport is an application service provider (“ASP”) serving independent advisors, independent broker-dealers, bank/trust companies and money management firms. The platform enables advisors and brokers to automate and customize essential advisory functions. ADVISORport fully integrates money manager, mutual fund and hedge fund product solutions with client profiling tools, asset allocation analysis, performance monitoring, rebalancing models and customized proposal and report generation.
Persimmon was founded in 1999 by Gregory S. Horn, whose 14 years of direct experience as an investment consultant were instrumental in developing the ADVISORport platform, which addresses the daily work flow requirements of an investment consulting practice. ADVISORport’s President, Stephen DeAngelis, brings 9 years of investment management industry experience to the Company, most recently from Delaware Investments where he served as a Senior Vice President and National Director of Sales and Marketing. Messrs. Horn and DeAngelis lead a team of 38 employees who support ADVISORport’s current client base of more than 45 independent advisor firms, broker-dealers, bank/trust companies and money management firms.
Rosemont is providing ADVISORport with a convertible note to fund operations and growth. “We have followed ADVISORport’s progress closely for the past year and are excited to have this opportunity to participate in the rapid growth of this market segment. The Company has a demonstrable value proposition that is quickly evident to its target clients, and is widely recognized as the leader in the automation of investment consulting services,” said David Silvera, Managing Director at Rosemont.
According to Horn, “With Rosemont’s support, ADVISORport will be able to enhance its position as the industry’s premier online infrastructure provider and accelerate its gains against less flexible and more expensive off-line competitors.”
Rosemont Partners is a merchant bank focused on providing strategic capital to compelling business opportunities within the asset management industry. ADVISORport is the third investment for Rosemont Partners I, L.P which also sponsored a management-led buyout of small and small-mid cap value manager Capital Technology, Inc. (subsequently renamed Charlotte Capital, LLC) in October 2000 and invested in Alpha Strategies, LLC, a pioneering investment adviser providing quantitative investment solutions to sophisticated plan sponsors and investment managers, in January 2001.
February 12, 2001
CONSHOHOCKEN, PA, February 12, 2001 – Rosemont Partners I, L.P. announced today that it completed an investment in Wayne, Pennsylvania-based Alpha Strategies, LLC. Alpha works with investment management firms and sophisticated plan sponsors that have “in-house” investment capabilities to develop quantitative return-forecasting models and innovative investment strategies that generate performance in excess of a given benchmark.
Alpha Strategies was founded in 1997 by Jason MacQueen, the Chairman and Founder of QUANTEC Ltd., which since 1980 has been a leading provider of investment technology and risk models for international investors. Alpha was created to apply the analytic framework developed by Mr. MacQueen at QUANTEC towards the creation and implementation of innovative and highly customized investment strategies. Through his work on behalf of QUANTEC and Alpha, Mr. MacQueen has become world-renown as an expert on the practical applications of portfolio theory to international and global investment management.
Alpha is managed by both Mr. MacQueen and Tony Baker, who serves as Managing Director. Prior to his involvement with Alpha, Mr. Baker held positions at Trilogy Capital Management, Leland O’Brien Rubinstein Associates (LOR) and was President of SEI Advanced Capital Management. Since joining Alpha in 1999, Mr. Baker has expanded Alpha’s menu of investment models to include a Diversified Futures Fund and a “Guaranteed Active Management” structure.
Alpha Strategies is the second investment for Rosemont Partners I, L.P., which provided working capital and retired the interest of a passive shareholder. “Rosemont helped us to identify our core strengths and position ourselves for growth. They have already been active on our behalf in making introductions to potential clients and employees,” said Mr. Baker.
Rosemont Partners is a merchant bank focused on providing strategic capital to compelling business opportunities within the asset management industry. “We’re excited about the opportunity afforded by Alpha. Jason, Tony and their colleagues are among the brightest minds in the investment management community, and we think their business model is going to profit from a number of industry trends, including the growth of the exchange-traded fund market and increasing sophistication of plan sponsors,” said John O’Shea, a Vice President at Rosemont.
October 5, 2000
CONSHOHOCKEN, PA, October 5, 2000 – Robert W. Mathai and Ronald B. Saba announced the formation today of a new asset management company, Charlotte Capital, LLC. Led by Mathai and Saba, Charlotte Capital is comprised of the former employees of Capital Technology, Inc., and is focused on providing small and small-mid cap value equity investment products mainly to institutional clients.
Upon its formation, Charlotte Capital will have approximately $240 million in assets under management and seven full-time employees, all of whom will hold equity in the Company. “We believe that the broad distribution of equity is the best tool for motivating our team and aligning our interests with those of our clients – when a client calls our office, there is a 100% chance that the call will be answered by an owner,” said Mathai.
Ronald B. Saba, CFA, (39) will lead the investment efforts of the firm. Ron joined Capital Technology in December of 1998 from Pioneer Investment Management where he led their micro and small cap value products. Prior to that he was a Principal and Portfolio Manager at Heartland Advisors. Robert W. Mathai, CFA, (39) will manage the day-to-day operations of the firm. Rob was at Capital Technology for over 14 years serving in a variety of roles, most recently as Chief Operating Officer.
Charlotte Capital received financial backing from West Conshohocken, PA-based Rosemont Partners I, L.P., which provided capital for purchasing the stock of the retiring President of Capital Technology, Robb W. Rowe. “We have found the ideal partner for our firm in Rosemont. They bring a wealth of strategic insight and industry knowledge to our firm. This knowledge coupled with our proven capabilities in the small value area will be a winning combination for both our existing and future clients,” said Saba.
Rosemont Partners is a merchant bank focused on providing strategic capital to compelling teams and firms in the asset management industry. Rosemont is led by Chas Burkhart, the founder of Investment Counseling, Inc., a leading strategic consultant to asset management firms worldwide. “We have come to know and respect the team at Capital Technology for years and are excited to partner with management to make Charlotte Capital a premiere, focused investment firm for its clients and employees,” said David Silvera, Managing Director of Rosemont Partners, LLC, the General Partner of Rosemont Partners I, L.P. “The team is lean, motivated and highly competent – they offer a potent combination of investment talent, management capability and solid infrastructure to the institutional marketplace,” noted Silvera.
The sponsorship of Charlotte Capital’s management buyout marks the inaugural transaction for Rosemont Partners I, L.P.
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