RIA in a Box acquired by private equity firm Aquiline Capital

New owners plan more growth for the software service provider

May 23, 2018 @ 1:42 pm

By Jeff Benjamin

Software service provider RIA in a Box has been acquired by the private equity firm Aquiline Capital Partners.

While the terms of the deal were not disclosed, this represents the latest in a growing trend of P-E investors adding exposure to the financial services industry.

Aquiline has appointed Barnaby Grist, a former senior executive at Schwab Advisor Services and Cetera Financial Group, as executive chairman of the board of RIA in a Box.

"The management team has built a market-leading business, and I see multiple opportunities to increase market penetration and expand the suite of services provided to clients," Mr. Grist said in a prepared statement. "The company will pursue organic growth initiatives as well as an acquisition strategy in the wealth management software and compliance industry."

Daniel Seivert, chief executive of investment bank Echelon Partners, said the deal is in line with P-E firms' appetite for fintech companies providing service as a software, or SaaS.

"P-E firms have been in love with these SaaS companies, because they have a high level of operating leverage: They build technology and then the cost stays relatively low," he said. "And RIA in a Box has made huge inroads in terms of automating."

Approximately 2,000 RIAs of varying sizes across the U.S. use the platform to increase compliance work-flow efficiency. Launched in 2005, RIA in a Box was acquired in 2011 by an investment group led by Will Bressman and GJ King.

David DeVoe, managing partner of DeVoe & Co., described the deal as "smart money continuing to invest in the independent wealth management space."

"I expect that Aquiline sees the trend of breakaways going independent and knows that RIA in a Box is helping that effort," he said.

In terms of Barnaby Grist coming on board, Mr. DeVoe described him as a "tremendous asset."

"I expect we will see some creative thinking in terms of which way this business could go in the future," Mr. DeVoe said.

0
Comments

What do you think?

View comments

Most watched

INTV

Young advisers envision a radically different business in five years

Fintech and sustainable investing are two factors being watched closely by some of the 2019 class of InvestmentNews' 40 Under 40.

INTV

Young professionals see lots of opportunity to reinvent the advice experience

Members of the 2019 InvestmentNews class of 40 Under 40 have strategies to overcome the challenges of being young in a mature industry.

Latest news & opinion

Target-date fund design may be wrong for retirees

Researchers suggest the funds don't adequately hedge against sequence-of-returns risk in retirement.

InvestmentNews' 2019 class of 40 Under 40

Our 40 Under 40 project, now in its sixth year, highlights young talent in the financial advice industry. These individuals illustrate the tremendous potential of those coming up in the profession. These stories will surprise, entertain, educate and inspire.

New Jersey fiduciary rule: Pressure leads to public hearing, comment deadline extension

Industry push results in chance to air grievances on July 17 and another month to present objections.

Galvin to propose fiduciary rule for Massachusetts brokers

The secretary of the commonwealth is proposing a fiduciary standard in response to an SEC investment-advice rule he views as too weak.

Summer reading recommendations from financial advisers

Here are some books that will keep you informed and entertained during summer's downtime

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print