NEW YORK – January 9, 2018 – ACA Compliance Group (“ACA”), the leading provider of risk management and technology solutions to the financial services industry in the U.S. and Europe, announced today that it will partner with Starr Investment Holdings, LLC (“SIH”) for its next phase of growth. SIH has agreed to acquire a controlling interest from ACA’s previous majority owner New Mountain Capital, LLC.
ACA is a leading provider of risk management and technology solutions that focus on regulatory compliance, performance, cybersecurity and risk analytics. ACA positions its clients for success by partnering with them to mitigate their regulatory, operational, cybersecurity and reputational risks. ACA’s clients include leading investment advisers, private fund managers, commodity trading advisors, investment companies, broker-dealers, and domestic and international banks.
“Starr’s global reach, substantial capital resources, long-term approach to creating value, and deep expertise in both core and attractive new markets make it the ideal partner for ACA as we enter our next phase of growth,” said Robert L. Stype, Chief Executive Officer of ACA. “We are confident that this transaction will enable ACA to continue our expansion into technology-based solutions and bring enhanced productivity and new capabilities to our clients around the world.”
Geoffrey Clark, Starr Investment Holdings’ Senior Managing Director, said: “We look forward to partnering with ACA’s talented leadership team and professionals, and believe there are significant opportunities to leverage our deep expertise in financial services, healthcare, and tech-enabled solutions to support the expansion of ACA’s market-leading platform into new services and verticals globally.”
Martin McNulty, Starr Investment Holdings’ Managing Director, stated: “ACA is the clear market leader in its space, with blue-chip clients, deep domain expertise, and a complementary platform of services. We are excited to be a resource to the leadership team in its continued development and commercialization of technology-driven solutions such as ComplianceAlpha® and Decryptex®.”
The transaction is expected to close during the first quarter of 2018, subject to customary closing conditions. Financing for the transaction will be provided by Ares Capital Partners. Starr was advised by Latham & Watkins LLP and KPMG LLP.
About ACA Compliance Group
ACA Compliance Group (“ACA”) is a leading provider of risk management and technology solutions that focus on regulatory compliance, performance, financial crime, and cybersecurity. We partner with our clients to help them build, enhance, and add controls to their business functions. Our clients include leading global bank and insurance company-affiliated or standalone asset management groups, investment companies, broker-dealers, private fund managers, and commodity trading advisors. For more information, visit www.acacompliancegroup.com.
About Starr Investment Holdings, LLC
Starr Investment Holdings, LLC ("SIH") is a multi-billion dollar New York-based investment adviser that leverages the Starr Companies’ unique duration-agnostic capital together with that of select institutions and family offices. SIH invests in privately-held technology-enabled services businesses with a particular focus on industries such as financial services and healthcare services. SIH partners with world-class management teams, supporting them with flexible capital and strategic resources, with a particular focus on opportunities to deploy or expand investments in strategic software and data-driven opportunities to enhance customer solutions. For more information, please visit www.starrholdings.com.
For Starr Investment Holdings:
Sard Verbinnen & Company
Paul Scarpetta / David Millar
For ACA Compliance Group: