Foreside to acquire fund distributor Quasar Distributors
Foreside Financial Group (Foreside), a provider of regulatory and compliance service and technology offerings to clients in the global asset and wealth management industry, is to acquire US Bancorp’s mutual fund and exchange-traded funds (ETFs) distribution business, Quasar Distributors.
The transaction is expected to close sometime in the first quarter of 2020. The acquisition will make Foreside one of the largest third-party fund distributors globally.
The acquisition will also expand Foreside’s internal team and client base, with the addition of more than 200 current Quasar clients, 26 employees and a new office location in Milwaukee, WI. With over USD1 trillion in assets under distribution, Foreside continues to grow its market share rapidly. The transaction will introduce Foreside’s customizable compliance solutions and outsourcing support to all current Quasar clients, while strongly focusing on expanding Foreside’s broker-dealer capabilities, including dealer clearing services.
“Foreside is excited for the potential this acquisition provides to broaden our wide range of compliance and regulatory service offerings to clients based all over the US,” says Dave Whitaker, President of Foreside. “Our inorganic growth continues to fuel our organic growth, as acquisitions like this one allow us to expand our service offerings and provide better strategic counsel and service to our clients.”
Quasar’s current clients range from small to large asset management firms, focused on mutual funds and ETFs. Quasar has carved out a niche during the past 20 years that has opened it up to growth opportunities outside of US Bancorp.
“With Foreside’s investment and core capabilities in the mutual fund and ETF distribution space, Quasar should thrive while remaining true to its strengths. We have historically had a strong working relationship with Foreside and expect that relationship to continue into the future given the complementary nature of our businesses. We appreciate the hard work and dedication the Quasar team has shown during the years and wish them all the best as they transition to Foreside,” said Joe Neuberger, head of US Bank Global Fund Services. “For us, the deal furthers our efforts to focus on our core competencies and grow strategically to create value for employees, customers, communities and shareholders.”