The Beneficient Company (BEN), a provider of liquidity and administrative services for holders of alternative assets and illiquid investment funds, has agreed to purchase US-based Provident Trust Group for an undisclosed amount.
Provident Trust is an independent administrator and custodian of over $3bn of self-directed retirement accounts for HNWI located in all 50 states and invested in alternative assets.
It serves as intermediary custodian between general partner sponsors of private equity, real estate and hedge funds and the Provident clients investing their retirement accounts in alternative assets.
The deal will accelerate BEN's entrance into HNW space with addition of 20,000 customers with established self-directed retirement accounts dedicated to alternative investments.
The transaction is subject to regulatory approval. Terms of the deal were not disclosed.
The Beneficient founder and CEO Brad Heppner said: "The acquisition of Provident is an important step for the continued growth of our platform, particularly our expansion into the high net worth (HNW) market through our funding of alternative asset liquidity plans and providing investment administration services and alternative asset insurance products.
“With our acquisition of Provident, BEN expects to serve an established market of 20,000 self-directed retirement accounts dedicated to alternative investments, representing over $3 billion in custodial assets.
“Each of these retirement accounts is owned by individuals to whom BEN intends to offer funding through its liquidity plans for alternative assets that have been tailored to meet the estate and tax planning needs of HNW individuals."
Provident Trust Group Co-Founder and president Jason Helquist said: "We look forward to joining the Beneficient team and to helping further expand this exciting platform. We expect that our clients will greatly benefit from the liquidity plans and services that BEN offers to investors in alternative assets. BEN has done exceptional work in the institutional market and we believe our combined capabilities will help to replicate that success in the high net worth space."