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

Rosemont Investment Group

CONSHOHOCKEN, PARosemont, 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.”

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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.”

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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.

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