Investment to allow STP to accelerate organic and inorganic growth plans
STP Investment Services, an end-to-end, technology-enabled investment operations service provider that supports more than $340 billion in total assets, has received a significant growth investment from Lovell Minnick Partners, a private equity firm focused on investments in financial services, financial technology and related business services. This investment will enable STP to accelerate ongoing investments in innovation, technology, workflow, and talent. STP plans to advance its organic growth initiatives while also accelerating its strategy of pursuing impactful M&A opportunities in the future. Terms of the deal were not disclosed.
“LMP’s partnership with STP is proof positive that the technology and services model is not only working well, but is the way of the future.”
STP provides technology-enabled outsourcing services to a broad array of firms, including investment managers, funds, family offices, wealth managers, and plan sponsors. As a true partner to its clients, STP acts as an extension of their middle- and back-office teams to expand their resources and alleviate operational burdens. Through BluePrint, the firm’s technology platform, serving institutional and wealth management clients, STP provides clients with scalability and a customized experience best-suited to their individual business needs.
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Founded in 2008, STP has steadily grown and expanded globally. In addition to its headquarters in Philadelphia, the firm opened offices in Bengaluru, India in 2014 to provide continuous client service. More recently, STP completed the acquisition of AlphaOne Capital (2019) to increase its trading, compliance and emerging manager services. In addition, in 2020, STP completed the acquisition of Accusource to expand its services to registered investment advisors (RIAs), family offices and asset managers. At the end of 2021, the STP acquired third-party fund administrator Tower Fund Services, providing STP clients with a turnkey fund administration platform.
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“LMP’s reputation as a growth-oriented investor in financial services precedes them,” said Patrick Murray, Chief Executive Officer, STP. “As we were looking for a strategic partner, it was important to us to find a partner that understood our business and our target market while also enabling us to continue to add value to our clients across different technology and service solutions, with a track record of investing in well-known industry success stories. LMP’s emphasis on client experience and high-touch services at their core was very impressive to us.”
LMP, headquartered in Philadelphia with offices in Los Angeles and New York, has a long track record of investing in the asset and wealth management industry, along with the technology and services firms that support those companies, most recently in Foreside Financial Group.
“We have a long track record of successful partnerships with high-growth, technology-driven companies run by proven, dynamic management teams with client-first attitudes,” said Spencer Hoffman, Partner at LMP. “We believe STP fits this profile perfectly. Anticipating their customers’ near- and long-term needs, STP continuously innovates. They use their technology and global footprint to put clients first, and it shows in the success they’ve had. We look forward to working closely with Patrick and the rest of STP’s management team as they grow the business and to further broaden the scope of the technology-enabled solutions they provide.”
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Brad Armstrong, Partner at LMP, commented, “Having invested in over 30 asset managers, wealth managers, and technology and outsourcing providers serving the investment product value chain, we have a deep appreciation for the operational challenges that investment managers face in today’s market environment. STP’s solutions allow clients to focus on core competencies and business plan execution while saving costs and mitigating risk. As a technology-driven, outsourced service provider with broad capabilities across asset classes, STP is uniquely positioned to help clients thrive while delivering first-class service.”
As a result of LMP’s investment in STP, members of the Philadelphia-based firm will join STP’s board, with Murray and the leadership team remaining in place.
Murray concludes, “LMP’s partnership with STP is proof positive that the technology and services model is not only working well, but is the way of the future.”
Raymond James served as financial advisor, and Fox Rothschild served as legal advisor, to STP. Schulte, Roth & Zabel and Nishith Desai Associates served as legal advisors to LMP.
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