Lightyear Capital and PSP Investments Announce Sale of Advisor Group to Reverence Capital Partners

NEW YORK–(BUSINESS WIRE)–Lightyear Capital LLC (“Lightyear”), a New York-based private equity
firm focused on financial services investing, announced today that
investment funds affiliated with Lightyear and the Public Sector Pension
Investment Board (“PSP Investments”), one of Canada’s largest pension
investment managers, have signed a definitive agreement to sell Advisor
Group, Inc. (“Advisor Group”) to Reverence Capital Partners. The
transaction is expected to close in the third quarter of 2019, subject
to regulatory approvals and other customary closing conditions, and
financial terms were not disclosed. Lightyear and PSP Investments will
continue to own minority stakes in the business.

Lightyear and PSP Investments acquired Advisor Group from AIG in May
2016. Since that time, client assets under administration have grown
from $157 billion at the time of purchase to $268 billion today. Over
the same period of time, Advisor Group has grown from 5,200 financial
advisors to more than 7,000 financial advisors, which has been driven by
strong recruiting results as well as several strategic acquisitions,
including Capital One Investing, Signator Investors, and Questar Capital
Corporation.

“Since our acquisition of Advisor Group from AIG in 2016, the company
has gone from strength to strength, supported by its talented management
team,” said Mark F. Vassallo, Managing Partner at Lightyear. “We value
the close working relationship we’ve had with the team and look forward
to Advisor Group’s continued growth going forward.”

“PSP partners with best-in-class private equity investors and management
teams. During our joint ownership with Lightyear Capital and under the
leadership of Valerie and Jamie, Advisor Group has transformed itself to
deliver tremendous performance for its clients and its financial
advisors,” said Simon Marc, Managing Director and Head of Private Equity
at PSP Investments. “We are very pleased to have supported the group in
this journey and wish Jamie and his team all the best in the next
chapter of growth.”

The current management team at Advisor Group will remain in place, with
Jamie Price continuing to serve as President & CEO and as a member of
the Board of Directors. Additionally, Valerie Brown, currently Executive
Chairman, will retire from her executive position. She will remain an
investor in the company.

Jamie Price, CEO of Advisor Group, said, “We are excited about the next
chapter of growth, with our unwavering commitment to service, innovation
and delivery for our clients as we partner with Reverence Capital
Partners. We have the strongest financial advisor network in the country
and look forward to expanding our footprint. I want to thank Mark
Vassallo and the team at Lightyear and PSP for their invaluable support
and advice as investors and Board members.”

Valerie Brown, Executive Chairman of the Board of Advisor Group, stated,
“The partnership with Lightyear and PSP has been exceptional and we
appreciate the commitment of both capital and experience over the past
few years.”

Barclays Capital Inc. acted as lead financial advisor to the Company.
RBC Capital Markets, LLC and SunTrust Robinson Humphrey, Inc. also
provided financial advice to the Company.

About Lightyear Capital LLC

Founded in 2000, Lightyear is a financial services-focused private
equity firm based in New York. Through its affiliated private equity
funds, Lightyear makes primarily control investments in North
America-based, middle-market companies across the financial services
spectrum, including financial technology, asset and wealth management,
healthcare financial services, insurance and insurance services,
payments and processing, and specialty finance. Lightyear brings focus
and discipline to its investment process, as well as operating,
transaction and strategic management experience, along with significant
contacts and resources beyond capital. For more information, please
visit www.lycap.com.

About PSP Investments

The Public Sector Pension Investment Board (PSP Investments) is one of
Canada’s largest pension investment managers with CAD$158.9 billion of
net assets as of September 30, 2018. It manages a diversified global
portfolio of investments in public financial markets, private equity,
real estate, infrastructure, natural resources and private debt.
Established in 1999, PSP Investments manages net contributions to the
pension funds of the federal Public Service, the Canadian Forces, the
Royal Canadian Mounted Police and the Reserve Force. Headquartered in
Ottawa, PSP Investments has its principal business office in Montreal
and offices in New York, London and Hong Kong. For more information,
visit investpsp.com or follow us on Twitter and LinkedIn.

Contacts

Lightyear Capital LLC
Elliot Sloane
212-850-5722
Elliot.Sloane@fticonsulting.com

PSP Investments
Verena Garofalo
+1 (514) 218-3795
media@investpsp.com

Author: dmnnewswire