TA Associates is to acquire a 54.4% interest in Stadion Money Management, LLC, a rapidly growing investment management firm, via several of its private equity funds. In connection with the closing of TA Associates’ investment, a new equity incentive plan will be created to broaden ownership among Stadion’s key investment and operational personnel. Terms of the investment were not disclosed.
Founded in 1991, Stadion offers investment management services via mutual funds, separate accounts and retirement accounts. Stadion employs an active money management approach, utilizing data-driven proprietary models to make asset allocation changes based on changing market conditions. The firm seeks to invest in top intermediate term performers when market conditions appear favorable, with the aim of delivering satisfying results with less volatility than traditional buy-and-hold strategies. Stadion is a portfolio strategist on the Genworth Financial Wealth Management platform, and its retirement account management services are bundled with the plans of several national retirement plan providers, including Lincoln Financial, Mutual of Omaha and Guardian. As of March 31, 2011, Stadion had approximately $6.7 billion in assets under management.
“We’re delighted to welcome TA Associates as the first institutional investor in Stadion,” says Tim Chapman, CEO, Stadion Money Management. “TA has a well-earned reputation for being a knowledgeable financial services investor with a long-standing management-friendly approach. We are confident that a partnership with TA will allow us to accelerate growth while maintaining the Stadion culture and the disciplined risk-averse investment approach that have been our hallmark.”
M Roy Burns (pictured), a Principal at TA Associates, says: “Stadion is precisely the type of differentiated, profitable, high growth company in which TA seeks to invest. Stadion’s early embrace of tactical asset allocation investment strategies has positioned it as a leader among its peers. With its unique approach to managing money, its highly-rated mutual funds, and its partnerships with some of the country’s leading financial services providers, Stadion is well-positioned for continued growth.”
