RIA Biz is reporting Goldman Sachs Group Inc. has been shopping around an ownership interest in Focus Financial Partners, LLC (“Focus”) currently held by Summit Partners, LP (“Summit Partners”). RIA Biz gathered much of its information from an article on Financial Advisor magazine’s website and speaking to unnamed sources. The article says that Focus currently has $45 billion of assets under advisement, administration and management through their partner firms. The article further reports that three private-equity firms have expressed strong interest in acquiring Focus and have signed non-disclosure agreements.
The article provides details on Focus’ financials, including that Focus has $175 million in debt and $80 million in preferred stock, while the earnings of the firm are about $40 million, with $22 million of cash flow that goes to Focus, while the other $18 million goes to the partner firms. The article provides additional detail about Focus’ financials, including how a deal may impact partner firms.
Both Summit Partners and Focus declined to comment.