Done deal: Mutual Fund Store sells stake to Warburg Pincus

Done deal: Mutual Fund Store sells stake to Warburg Pincus
The Mutual Fund Store, one of the largest RIA firms in the industry, has inked a deal to sell a controlling stake in its business to private equity firm Warburg Pincus. The announcement comes one month after <i>InvestmentNews</i> first reported that a deal for the RIA was in the works, which founder Adam Bold (pictured) denied at the time.
FEB 08, 2012
Despite earlier denials from management, the Mutual Fund Store, one of the largest fee-only registered investment advisory firms in the industry, has inked a deal to sell a controlling stake in its business to private equity firm Warburg Pincus. The deal comes one month after InvestmentNews first reported that CEO Adam Bold was listening to offers for the firm. Executives for the RIA, which ranks as the third-largest in InvestmentNews' most recent top RIA rankings, adamantly denied the exclusive report. In fact, Mr. Bold dismissed the InvestmentNews story, telling several other publications that the firm was not for sale. He declined to comment to InvestmentNews about a potential sale. Terms of the deal, which was announced in a statement late Friday afternoon, were not disclosed. Sources told InvestmentNews on June 28 that the firm was seeking an investment of between $300 million and $350 million. "We are very excited to partner with Warburg Pincus," Mr. Bold said in the statement. "This gives us the opportunity to grow and provide more hard working Americans the level of service and expertise our clients have come to expect." Mr. Bold founded The Mutual Fund Store LLC in 1996. With headquarters in Overland Park, Kan., it now has more than 70 franchises across the country. While Wall Street firms largely shun small investors, the minimum for a new client to invest with The Mutual Fund Store is $50,000. Mr. Bold, who is seen frequently on CNBC and Bloomberg Television, also hosts a weekly radio show, “The Mutual Fund Show.”

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