Rosemont Sells Stake in Clearstead, Executing Final Stage of Recapitalization Investment | Financial Buzz

Rosemont Sells Stake in Clearstead, Executing Final Stage of Recapitalization Investment

Rosemont, a private investor in employee-owned asset and wealth management firms, announces it has entered a definitive agreement, subject to regulatory approval, to sell Rosemont Partners III, LP’s minority equity interest in Clearstead to Flexpoint Ford.

Rosemont’s 2017 investment in Clearstead was instrumental in accelerating an equity succession plan, rebranding, and profitable growth. During the four-year investment, Clearstead realized more than $10B in AUA growth, broadened employee ownership, executed three acquisitions, and consummated multiple key hires. Clearstead also steadily expanded and upgraded its service offering, investment capabilities, and operating infrastructure.

“Our relationship with Rosemont was much more than a financial agreement,” said Dave Fulton, CEO of Clearstead. “Their partnership, industry relationships, networks and decades of industry experience have been invaluable to us. With their support and guidance, our firm is now positioned for the next decade of growth and success.”

Clearstead is an institutional and private client advisory firm with approximately $29.2 billion in assets under management and advisory as of June 30, 2021. It has been constructing globally diversified portfolios for individuals, families, foundations, and endowments since 1987, and has built a first-class reputation for comprehensive wealth management for its clients.

“Clearstead has developed into one of the premier investment advisory and wealth management firms in the country,” said Brad Mook, Managing Director at Rosemont. “It is well-structured and positioned to continue to grow and serve its clients at a very high level, and we are proud to have helped as its strategic partner over the past four years. We would have happily continued as Clearstead’s partner indefinitely if not for our legacy PE fund structure.”

While Rosemont has transitioned into a permanent capital investment structure, the transaction represents the third realization for Rosemont Partners III, LP in 2021. It is subject to regulatory approval and is expected to close in the fourth quarter of 2021.

Colchester Partners LLC, an investment banking and M&A advisory firm focused on the investment management industry, served as financial advisor to Clearstead Advisors.

About Rosemont

Rosemont is a specialist minority equity investor exclusively focused on a select number of partnerships with high-quality, employee-owned asset and wealth management companies. Rosemont acquires minority equity positions in support of management buyouts, recapitalizations, ownership transitions, and selected start-ups. In addition to its experience providing capital and employee-driven ownership solutions, Rosemont leverages its deep network and knowledge of the investment management industry developed through more than 30 years of advising and investing in asset and wealth management businesses. For more information visit www.rosemontinv.com.

About Clearstead

Clearstead Advisors, LLC is a private client and institutional financial advisory firm located in Cleveland, Ohio. The firm advises over $29 billion for endowments and foundations, retirement funds, healthcare organizations and individuals, families, and related entities. Clearstead employs over 100 professionals, of whom 37 are shareholders in the firm.

Contacts

Press Contact

Mary Victoria Falzarano

Public Relations Manager

Wealth Matters Consulting

(561) 578-0697

mvf@wealthmattersconsulting.com

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