Realization represents K1â€™s second exit since Safer-At-Home orders were put in place in March 2020
LOS ANGELES, May 21, 2020 â€” K1 Investment Management, LLC (â€œK1â€), a leading investment firm focusing on high-growth enterprise software companies, today announced it has entered into a definitive agreement to sell FMG Suite, LLC (â€œFMG Suiteâ€), the category leader in cloud-based marketing automation software for financial services professionals, to Aurora Capital Partners (â€œAuroraâ€), a leading private equity investor in enterprise software and financial technology.
The announcement comes on the heels of K1â€™s April 20, 2020 announcement of the sale of its holding in Checkmarx LLC to Hellman & Friedman LLC in a transaction valuing Checkmarx LLC at $1.15 billion. The Checkmarx transaction represents the largest acquisition of an application security company to date.
The sale of FMG Suite to Aurora concludes a successful partnership between K1 and FMG Suite. Since becoming the first-and-only institutional investor in the company in 2016, K1 strengthened FMG Suiteâ€™s market penetration and completed five strategic acquisitions comprised of Advisor Launchpad, Advisors Assistant, Agency Revolution, MarketingPro and Platinum Advisor Strategies. Today, FMG Suite is the leading all-in-one marketing solution for financial advisors and, through its Agency Revolution brand, insurance agencies.
â€œWe are grateful for our partnership with K1 and the operational expertise they implemented to help invest in and grow the company,â€ said Scott White, CEO of FMG Suite. â€œK1 shared our vision to transform marketing automation for financial advisors and insurance agencies to allow them to build their businesses, expand their influence and strengthen customer relationships. The K1 team has been an incredible partner and advisor to FMG Suite as it has grown into the true category leader in the space. We are fortunate to be transitioning to another exceptional partner in Aurora, and look forward to working with them to build on our success and continue to enhance our position as a market leader.â€
FMG Suite was founded in 2011 by Craig Faulkner and has been led by Scott White since 2016. It employs more than 200 employees and serves over 40,000 financial professionals who use FMG Suiteâ€™s proprietary platform to create and deliver timely and effective communications to their clients and prospects across email, social media and other channels.
â€œWe are grateful for the privilege to partner with Scott White and the exceptional management team at FMG Suite,â€ said Taylor Beaupain, Managing Partner at K1. â€œWhen K1 first invested in the company, we saw a mission-critical product that transformed how financial professionals engaged with clients and prospects. We are proud to have helped scale the organization and solidify the companyâ€™s leading market share.â€
â€œWe are thrilled to partner with FMG Suiteâ€ said Aurora Partner Rob Fraser. â€œFMG Suite is an ideal fit with our investment strategy, demonstrating outstanding market leadership, stability, and growth potential. Scott White and his team fit naturally with our culture given their commitment to excellence, transparency, and personal growth, and we are delighted to partner with them for FMG Suiteâ€™s next chapter.â€
FMG Suite represents the 8th platform investment in Aurora Equity Partners V, and a continued commitment from Aurora to the enterprise software and financial technology sector. Aurora has acquired more than 25 companies in the space as part of its buy-and-build program, and plans to further accelerate FMG Suiteâ€™s acquisition strategy.
The transaction is subject to regulatory approval. FMG Suite was advised by Lincoln International LLC as financial advisor and Morris, Manning & Martin LLP as legal counsel. Aurora was advised by Harris Williams LLC as financial advisor and Gibson, Dunn, & Crutcher LLP as legal counsel.
K1 builds category leading enterprise software companies. As a global investment firm, K1 assists high-growth businesses to achieve successful outcomes, and invests alongside strong management teams that continue to guide their organizations on a day-to-day basis. With over 90 professionals, K1 changes industry landscapes by assisting with operationally-focused growth strategies designed to assist portfolio companies scale efficiently. Since inception of the firm, K1 has partnered with over 125 enterprise software companies including industry leaders such as Apttus, Buildium, Checkmarx, Clarizen, ControlUp, Emburse, FMG Suite, Granicus, Litera Microsystems, Onit, Rave Mobile Safety, RFPIO, Smarsh, WorkForce Software and Zapproved. For more information about K1, please visit k1capital.com or follow us at linkedin.com/company/k1im.
About FMG Suite
FMG Suite delivers the leading advisor marketing platform backed by an award-winning, FINRA-reviewed and compliance-ready content library. Powering the industryâ€™s best websites, multimedia content, and marketing tools for more than 40,000 advisors and insurance agents, FMG Suite helps them deepen relationships with clients, stay connected with prospects, and grow their businesses. Rated first in market share in the 2019 and 2020 T3 Software Survey Report, FMG Suite solutions are designed to advance how advisors develop their marketing strategies and automate their most effective marketing tactics. FMG Suite is headquartered in San Diego, CA with satellite offices across the United States. For more information about FMG Suite, please visit www.fmgsuite.com.
About Aurora Capital Partners
Aurora Capital Partners is a leading private equity firm focused principally on control investments in middle-market companies with leading market positions, stable industry dynamics, attractive business model characteristics and actionable opportunities for growth in partnership with management. Aurora provides unique resources to its portfolio companies through its Strategy & Operations Program and its team of experienced operating advisors. Aurora’s investors include leading public and corporate pension funds, endowments and foundations active in private equity investing. For more information about Aurora Capital Partners, visit www.auroracap.com.