The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:An Asset Manager Sells Its Fund Services Arm Not Rated 3.0 Email Routing List Email & Route  Print Print
Monday, June 27, 2016

An Asset Manager Sells Its Fund Services Arm

Reported by Neil Anderson, Managing Editor

A Midwestern, publicly-traded asset manager is selling its third-party fund services mutual fund support unit to an independent shop in New England.

On Thursday Richard Berthy and David Whitaker (CEO and president, respectively, of Portland, Maine-based Foreside Financial Group) unveiled a deal to buy Columbus, Ohio-based Beacon Hill Fund Services from Diamond Hill Investment Group [profile]. The deal is expected to close on July 31, and terms were not disclosed.

MFWire could not immediately reach Diamond Hill CEO Chris Bingaman or a Diamond Hill spokesperson for comment on the deal.

Beacon Hill's team of 22 supports 19 clients, 144 funds, and $28.6 billion in combined assets. Steve Mintos, president of Beacon Hill, confirms that his entire team will be joining Foreside.

"Everybody's going," Mintos tells MFWire. "The whole team is part of the deal."

Foreside's B-Ds serve as the distributor for more than $800 billion in combined assets, and it has offices in Berwyn, Pennsylvania and Boston, Massachusetts, as well as Columbus and Portland. Once the deal closes, Foreside will have about 150 people in total. Foreside first launched in 2005.

Both Beacon Hill and Foreside offer the following services to mutual funds: distributor (Foreside will have 18 broker-dealers once the deal closes), compliance (including providing funds with a chief compliance officer), finance (including providing funds with a chief financial officer), business management, and corporate governance. (Beacon Hill and Foreside do not handle fund accounting, custody, or transfer agency.)

Berthy praises the Beacon Hill team as "some of the industry's most experienced professionals."

"Foreside and Beacon Hill share a strategic vision to broaden our scope of products and services, and to enhance our core services for investment managers and their funds, in both the U.S. and offshore markets," Berthy states.

"We've known them for years," Whittaker tells MFWire. "We share a strategic vision and culture and provide many of the same products and services."

"They're a great firm, the leader in the marketplace. What's not to like about that?" Mintos says of Foreside. "Some of our folks and some of their folks have worked together with joint clients in the past, in previous lives. There was a ton of synergy."

"We were at a stage in our life where we needed to be serious about what what we were doing next," Mintos adds, saying that it's very important to the Beacon Hill team "to be independent and objective."

"We're going to a company that's in the same space that we are, that's independent," Mintos adds.

Diamond Hill created Beacon Hill about eight years ago, first to support Diamond Hill's own funds.

"They'll continue to be a client," Mintos says of Diamond Hill, "They see the need for us to go to the next step."

The Beacon Hill team and Foreside's Columbus team, about 30 people in total will combine in a new office space in Columbus suburb Gahanna, in the same building as Foreside's current Columbus office. And that new office space, Mintos says, will provide space for Foreside to expand out to 45 or more people in the Columbus area.

Once the deal closes, Mintos confirms that the Beacon Hill Fund Services brand "will go away." And, the Beacon Hill team will be integrated into the rest of Foreside.

Check back for more updates as this story develops. 

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2021: Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

  1. ETF.com Awards 2020, April 20
  2. The 31st Sub-Advised Funds Forum, Apr 20-21
  3. IDC Virtual Roundtable: Florida - April 2021, April 20
  4. IMEA Marketing Council Roundtable | Engaging Advisors In a Virtual World, April 21
  5. MFDF Director Discussion Series - Open Forum via Zoom (Northeast), April 21
  6. FIASI virtual event - ESG in Fixed Income: Shining a Light on Transparency, Apr 22-23
  7. IDC Virtual Roundtable: Alabama, Georgia, North Carolina, and South Carolina - April 2021, April 22
  8. IDC Webinar: The Future of the Workplace - April 2021, April 23
  9. IDC Virtual Roundtable: Arkansas, Louisiana, Mississippi, Oklahoma, Tennessee, and Texas - April 2021, April 27
  10. MFDF Case Studies in Fund Oversight — A Virtual Roundtable for Directors, Apr 28-29
  11. IDC Virtual Roundtable: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota - April 2021, April 29
  12. 44th Annual AIMSE Marketing & Sales Conference, May 2-4
  13. MFDF Director Discussion Series - Open Forum via Zoom (Southeast), May 5
  14. ICI 2021 General Membership Meeting - Day 1, May 6
  15. Emerging Manager Forum USA, May 12-14
  16. ICI 2021 General Membership Meeting - Day 2, May 13
  17. 2021 FINRA Annual Conference, May 18-20
  18. IDC Speaker Series - Abby Joseph Cohen: A Conversation About the State of the Global Markets, May 19
  19. 2nd annual ETFGI Global ETFs Insights Summit - USA, May 19-20
  20. MFDF Director Discussion Series - Open Forum via Zoom, May 19
  21. Irish Funds Online Annual Global Funds Conference 2021, May 19-20
  22. MFDF webinar - Fund Director Compensation: MPI Annual Survey (2021), May 20
  23. ICI 2021 Operations and Technology Conference, May 20
  24. MFDF webinar - Board Oversight of a Fund's Derivatives Risk Management and Fund Compliance With Rule 18f-4, May 24
  25. MFDF webinar - The Use of Alternative Data Sources and Considerations for Fund Directors, May 26
  26. IDC 2021 Virtual Fund Directors Workshop, June 3

©All rights reserved to InvestmentWires, Inc. 1997-2021
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use