GTCR Announces Agreement to Sell ConvergEx Group

Deal Reflects Solid Execution of a Strong Growth Strategy

CHICAGO--()--GTCR, a leading private equity firm, today announced it has entered into a definitive agreement to sell its portfolio company, ConvergEx Group (“ConvergEx”), to funds advised by CVC Capital Partners (“CVC”). The transaction is an all cash transaction expected to close in the fall following receipt of financing and customary regulatory approvals. ConvergEx is a leading technology company offering software products and technology-enabled services to hedge funds, traditional asset managers, broker-dealers, corporations and plan sponsors.

Upon close of the transaction, CVC will be the largest owner of the ConvergEx group of companies. The existing ConvergEx management team, led by Chairman and CEO Joseph Velli, will remain substantial shareholders and continue to manage the company.

GTCR partnered with The Bank of New York Mellon Corporation (“BNY Mellon”), Mr. Velli and other senior managers in 2006 to form ConvergEx Group. The initial transaction combined BNY Mellon’s leading agency execution businesses with Eze Castle Software, a leading order management system vendor. This transaction provided an opportunity to bring cutting-edge technology to the buyside and capture a growing share of electronic trading volumes. Since then, the company has executed its strategy well, expanding the range of its technologies through a series of strategic acquisitions as well as through organic growth.

“We are truly appreciative of the many fine efforts by Joseph Velli and his management team as they have built ConvergEx into a leading technology company,” said GTCR Principal Collin Roche. Added GTCR Principal Dean Mihas, “We have enjoyed an outstanding partnership with management. The new relationship with CVC represents an exciting new chapter in the ConvergEx story.”

“I’d like to thank GTCR for their unwavering support in helping ConvergEx become an industry-leading company. They have been a true partner,” said Mr. Velli. “We have had a fantastic period of growth with GTCR and look forward to working with CVC as we continue to execute our growth strategy and build out our capabilities to provide unique technologies that today’s marketplace requires.”

Goldman Sachs & Co., JPMorgan Chase & Co., Citigroup, Inc. and Barclays Capital PLC served as financial advisors for the company and its shareholders. Kirkland & Ellis, LLP and Schulte Roth & Zabel, LLP served as legal counsel.

About GTCR

Founded in 1980, GTCR is a leading private equity firm focused on investing in growth companies in the Financial Services & Technology, Healthcare and Information Services & Technology industries. The Chicago-based firm pioneered the “Leaders Strategy” – finding and partnering with world-class leaders as the critical first step in identifying, acquiring and building market-leading companies through acquisitions and organic growth. Since its inception, GTCR has invested more than $8.5 billion in over 200 companies. For more information, please visit www.gtcr.com.

Contacts

for GTCR
Eileen Rochford, 312-953-3305
eileenr@theharbingergroup.com

Contacts

for GTCR
Eileen Rochford, 312-953-3305
eileenr@theharbingergroup.com