The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:After Ultimus and Gemini Merge ... Not Rated 0.0 Email Routing List Email & Route  Print Print
Tuesday, November 20, 2018

After Ultimus and Gemini Merge ...

Reported by Neil Anderson, Managing Editor

Two tasks will be front and center for Ultimus Fund Solutions' new chief after the merger with the Gemini Companies closes early next year.

Gary Tenkman
Ultimus Fund Solutions
Yesterday, Chicago-based private equity firm GTCR agreed to separately buy Cincinati-based Ultimus and Hauppauge, New York-based Gemini, then merge them together in an independent mutual fund administration giant. The new company would have more than $150 billion in combined AUA and support more than 840 funds. The deals are expected to close in Q1 2019, and Ultimus president Gary Tenkman will become the combined firm's CEO, under the Ultimus brand. Watch for Tenkman to expand the combined firm and possibly do more deals.

Collin E. Roche
Managing Director
Yet, first off after merger, the combined team will "pull out the corporate infrastructure out of NorthStar ... to be able to operate as [a] separate company," says Tenkman. (NorthStar Financial Group is the soon-to-be former parent of Gemini.)

The other key early task, Tenkman says, is "working together to leverage best practices and technology." He notes that both Gemini and Ultimus currently use the InvestOne for fund accounting and PowerAgent for transfer agency.

"The two core platforms that we use are the same," Tenkman tells MFWire. "That makes the integration a lot easier in that we're just going to focus on best-of-breed surrounds."

"Both businesses have a common technology architecture, agrees Collin Roche, managing director of GTCR. "The opportunity there is somewhat less complex than in other situations."

"Our real goal on this is to keep the client service neutral to positive throughout this process of integration," Tenkman adds.

To that end, Tenkman plans to keep Ultimus' and Gemini's different offices intact. Ultimus currently has offices in: Chicago; Cincinnati; Columbus, Ohio; Denver; and Indianapolis. Gemini has offices in Chicago; Hauppauge; Omaha; Phoenix; and San Rafael, California.

"Our plans are to keep those service offices the way they are. Our collective difference, it's about our service team and providing great service," Tenkman says. "People are going to want to know that their teams will stay intact. There's no plans to consolidate any of that."

As for staff, Gemini and Ultimus have more than 500 employees combined. Tenkman says it's too early to talk about staffing changes. GTCR's Roche says that, while "there will likely be some redundancies," he expects the combined team to be even bigger a year from now.

"We expect these businesses to grow, to grow in staffing and to grow in opportunity set," Roche tells MFWire, adding that Ultimus and Gemini have certain advantages as "non-bank service providers" (in contrast with many other big mutual fund administration shops that are owned by banks). "Both businesses can become that much more competitive in the market with greater scale."

"We'll be working across the aisle to bring the management teams together," Tenkman adds.

Ultimus and Gemini each bring some unique strengths to the table, in addition to their core mutual fund administration efforts. Thanks to Ultimus' acquisition last April of Woodfield Fund Administration, Ultimus is "a little more sizable on the private fund side" of the business." Meanwhile, Gemini does work with ETFs, 529s, and managed accounts.

As for further M&A, the Gemini and Ultimus teams have "enough to chew on right now," Tenkman says, yet doing more deals down the line is on their "radar screen." Roche says GTCR, a 38-year-old PE firm, will be keeping an eye out for more service provider deals.

"We're a growth-oriented firm, and we specialize in working with very strong management teams ... bringing broader product capabilities or broader market coverage or bigger scale," Roche says. 

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2022: Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

  1. 2022 ICI Leadership Summit, May 25-26
  2. ALFI Roadshow to New York, May 25
  3. 2022 IDC Fund Directors Workshop, May 26
  4. Irish Funds Annual Global Funds Conference 2022, May 30-31
  5. WealthManagement Edge, May 31 - June 3
  6. MFDF 2022 Fund Governance and Regulatory Insights Conference, Jun 8-9
  7. 28th annual Expect Miracles East Coast Classic, June 9
  8. 2022 Sohn Investment Conference, June 9
  9. IDC webinar - Cybersecurity for Fund Boards: The Current Landscape, June 9
  10. MMI webinar - Driving Business Value with Artificial Intelligence & Data, June 15
  11. MFDF webinar - Key Takeaways From Morningstar's 2021 Annual Fund Fee Study, June 16
  12. MFDF Director Discussion Series - Open Forum (Chicago), June 21
  13. 2022 MMI Emerging Asset Managers Forum, June 23
  14. MFDF In Focus: Capitol Hill, A Conversation with Congressman Bryan Steil, June 28
  15. Financial Planning INVEST, Jun 28-29
  16. MFDF webinar - Differentiating Mutual-Fund-to-ETF Conversions, July 19
  17. MFDF Director Discussion Series - Open Forum (New York), July 20
  18. 2022 MMI Distribution Leadership Forum, Jul 20-21
  19. MFDF webinar - Fund Boards' Oversight of Investment Performance, July 28
  20. MFDF webinar - Performance, Perception and Manager Selection, September 14
  21. 2022 ICI Tax and Accounting Conference, Sep 18-21
  22. 5th annual Expect Miracles Atlantic Coast Classic, October 3
  23. Nicsa Fearless Leadership Symposium, Oct 6-7
  24. 2022 MMI Annual Conference, Oct 19-21
  25. 2022 IDC Fund Directors Conference, Oct 24-26
  26. 18th annual Expect Miracles Wine & Spirits Event, October 27

©All rights reserved to InvestmentWires, Inc. 1997-2022
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use