8/21/17
Clarion Capital Partners Completes Investment in AML RightSource, a Gabriel Partners Company Clarion Capital Partners Completes Investment in AML RightSource, a Gabriel Partners Company
New York, August 21, 2017 – Clarion Capital Partners, LLC today announced that it has completed an investment in AML RightSource, a Gabriel Partners company and leader in Anti-Money Låaundering (“AML”), Bank Secrecy Act (“BSA”), and Financial Crimes compliance services. Current shareholders of AML RightSource, Frank Ewing and Paul Linehan, will maintain an ownership stake in AML RightSource and will lead the business in partnership with Clarion. As part of the transaction, Mr. Ewing has been promoted to CEO, and Mr. Linehan to President. The terms of the transaction, which closed on August 18th, were not disclosed.
The new partnership will help AML RightSource to align even more closely with its customers in the banking, financial services and online payments industries, pursue new customers, and invest in its employees and internal infrastructure. AML Rightsource expects to add new services and geographies as part of a long term strategy to be a best-in-class solutions provider for its customers.
“We have really enjoyed getting to know the AML RightSource team over the last six months. The company has an exceptional management team and an exciting future to enhance its leadership position in AML/BSA compliance services,” said Eric Kogan, a Partner with Clarion Capital Partners. “We look forward to working with AML RightSource to sharpen its strategy and help the company grow.
“This transaction is a natural evolution of AML RightSource’s growth over the last several years.” said Mr. Ewing. “With this partnership, we expect to enhance our current service offerings to meet the needs of our growing customer base. We believe the transaction will allow us to continue on our successful path, which will benefit our employees as well.”
“Clarion’s long term growth investment approach is a great match for the opportunity that lies ahead of AML RightSource and exactly what the company needs to extend its leadership position,” said AML RightSource’s President, Paul Linehan. “With the experience and resources of Clarion, we expect to evaluate and improve every aspect of our business.”
Matt Feldman, a Principal at Clarion added: “AML RightSource has the potential for tremendous organic growth and is a solid platform on which to build new revenue sources. Clarion is excited to participate in this growth, fueling an already growing company with the resources and experience that will help it evaluate new opportunities for the future.”
Raymond James & Associates, Inc. served as exclusive financial advisor to Gabriel Partners in this transaction, and McDonald Hopkins LLC served as legal counsel. Clarion Capital was advised by the law firm of Brownstein Hyatt Farber Schreck. Financing for the transaction was provided by Midcap Financial.
About AML RightSource
AML RightSource, a Gabriel Partners company, is a leading provider of AML/BSA and Financial Crimes co-sourcing solutions. With well over 500 AML/BSA professionals, AML RightSource provides highly-trained AML/BSA professionals and subject matter experts to its clients in order to meet their AML/BSA regulatory demands. The company’s current services include transaction monitoring, alert backlog management, enhanced due diligence reviews, and financial crimes advisory services. AML RightSource is headquartered in Cleveland, Ohio, and has additional facilities in Hudson, Ohio and Phoenix, Arizona. Additional information on AML RightSource can be found at www.amlrightsource.com.
About Clarion
Founded in 1999, Clarion is a New York-based investment manager operating two primary business segments: Private Equity (launched in 1999) and Structured Credit (launched in 2018). Clarion’s private equity business seeks to make primarily control investments in a diversified portfolio of lower middle-market companies generating $7.5-30.0 million of EBITDA. Clarion focuses on growth companies in industries such as: Media, Entertainment & Technology; Financial Technology & Services; Business, Healthcare & Industrial Services; and Consumer. Clarion’s structured credit business focuses mostly on CLO equity and mezzanine investments, sourced both in the primary and secondary markets. The structured credit team manages traditional private funds and an insurance-dedicated fund. Additional information on Clarion can be found at www.clarion-capital.com.