For GTCR LLC, among the major areas of investment in 2023 has been financial services.
The firm has inked deals small and large in the space, including its $17.5 billion deal for payments company WorldPay Inc. and its undisclosed investment in Fairfield, Conn.-based Foundation Source Philanthropic Services Inc., and many others in between.
But despite investing in a range of services within the financial world — from payments to lending solutions to compliance — one key theme rings true in how GTCR plans to shape these newly acquired businesses through the remaining months of 2023 and into 2024 and beyond: investment in technology and acquisitions to further such growth.
“GTCR invests in companies that serve as vendors to financial services companies and institutions or participate in the delivery of a financial service/product to businesses or consumers,” said Mike Hollander, a managing director at the firm.
Fresh Platforms to Grow
In September, for instance, the firm acquired Foundation Source Philanthropic Services, which provides administrative, compliance, advisory and other solutions to family, corporate and independent foundations.
Founded in 2000, Foundation Source supports over 2,000 foundations representing north of $20 billion in charitable assets. In 2022, the company administered charitable grants of over $1.3 billion on behalf of clients.
Fresh capital from GTCR will be used to fund deals as well as organic growth for Foundation. The company would like to expand its product offerings and delivery, and build support for private banks, trusts, wealth managers and RIAs.
“Our investment will be focused on transforming the company into a premier wealth technology and services provider that addresses critical planning needs of high net worth individuals,” said GTCR co-CEO and managing director Collin Roche, about Foundation Source. “Specifically, we will pursue a strategy of investing in tech enhancements and adjacent product lines and capabilities in wealthtech, both organically and through M&A, to broaden our offering to clients.”
The company has a technology-enabled foundation services platform and a high-quality delivery model, he added.
Editor’s note: The original, full version of this article was published Nov. 6, 2023, on The Deal’s premium subscription website. For access, log in to TheDeal.com or use the form below to request a free trial.
If you’re already a subscriber, log in to view this article here.