NAIC Welcomes New Members!

The NAIC proudly announced that Ariel Investments LLC - https://www.arielinvestments.com and Smith, Graham & Co. Investment Advisors, L.P. - https://smithgraham.com have joined the association. Founded in 1983, Chicago-based Ariel oversees approximately $12.4 billion in assets through nine separate account strategies and six mutual funds. The firm began as a small- and mid-cap value manager, and evolved strategically to offer three approaches - all of which seek out attractive intrinsic value through relatively concentrated portfolios. Founded in 1990, Houston-based Smith Graham manages approximately $6 billion in assets for a broadly diversified, institutional client base including public funds, corporations, endowments, and Taft-Hartley plans and specializes in managing fixed income and equity assets.

Capital-Acquisition Brokers Now Subject to Pay-To-Play Rules

The SEC recently addressed a loophole under which its pay-to play rules did not apply to advisers known as “Capital-Acquisition Brokers” or “CABs.” Under the new rules by FINRA registered brokers and financial advisors are now subject to the same pay-to-play rules that registered investment advisors have been subjected to under the SEC. The rule now makes it possible for investment advisors to hire CABs to solicit government work since all entities are now operating under the same pay-to-play rule book. In this installment of Compliance Corner, NAIC partner ICSGroup advises vigilance by investment advisors to make sure that their employees’ political contributions can overcome regulatory scrutiny and offers a few best practices can be implemented to ensure compliance with the SEC and FINRA pay-to-play rules.

Kirkland & Ellis LLP Proudly Supports NAIC Conference

Kirkland & Ellis - https://www.kirkland.com/ was among those sponsors who made the NAIC Private Equity & Hedge Fund Conference possible. For more than 100 years, Kirkland has provided exceptional service to clients around the world in complex litigation, corporate and tax, intellectual property, restructuring and counseling matters. The firm has three core practices: Corporate and Tax, Litigation, Intellectual Property, and Restructuring. Kirkland's principal goals are to provide the highest quality legal services available anywhere; to be an instrumental part of each client's success; and to recruit, retain and advance the brightest legal talent.

NAIC Members in the News

Stellex Capital Management Partners with Automotive Industry Veteran

Stellex Capital Management announced its partnership with Bruce Swift, a senior executive in the automotive industry, to create a niche manufacturing platform. The primary focus areas are the manufacturing and industrial service businesses where we have significant experience investing over several economic cycles and maintain longstanding relationships with key industry participants. With over 30 years of senior management experience within the automotive industry, Mr. Swift was most recently Chief Executive Officer of Diversified Machine, Inc., a leading vertically-integrated supplier of fully engineered chassis and powertrain components and modules for the automotive OEMs and Tier 1 suppliers.

New MainStream Completes Recapitalization of Medical Staffing Firm

New MainStream Capital announced it partnered with company founder Tim Kinnetz in the recapitalization of Iowa-based GrapeTree Medical Staffing LLC. The transaction closed Oct. 22; terms were not disclosed. In addition, New MainStream Capital operating executive council member Bob Livonius will serve as a board member of GrapeTree. GrapeTree will serve as the platform investment in New MainStream Capital’s effort to build a provider of CNA and RN staffing to long-term care facilities and hospitals on both a per diem and contract basis. In connection with the transaction, the firm made a "substantial capital commitment" that will be used to add employees, expand service offerings and make strategic acquisitions.

Siris Affiliates to Acquire Intralinks Holdings, Invest in Synchronoss

Siris Capital Group, LLC announced that investment funds affiliated with Siris have entered into a definitive agreement to acquire 100% of the common stock of Intralinks Holdings, Inc., a global leader for secure data sharing and enterprise collaboration solutions and a wholly owned subsidiary of Synchronoss Technologies, Inc. (NASDAQ: SNCR). Investment funds affiliated with Siris have also entered into a definitive agreement to make an investment in convertible preferred equity of Synchronoss. Under the terms of the agreements, investment funds affiliated with Siris will acquire all the stock of Intralinks for approximately $1 billion in consideration and Intralinks. The Siris affiliates will also make an investment in convertible preferred equity of Synchronoss in an amount of $185 million. Siris’ investment would initially be convertible into approximately 19.8% of Synchronoss’ common stock.

On the Move

HarbourVest Partners Appoints Simon Jennings as Managing Director

HarbourVest Partners announced that Simon Jennings has joined the firm as a Managing Director. Based in London, Jennings will focus on business development with distribution partners in Europe and Asia to help their private wealth clients achieve their private markets objectives. Prior to joining HarbourVest, he was the Global Head of Private Equity at HSBC where he was responsible for creating, structuring, and accessing private equity investment opportunities for private and institutional clients. Before that, Jennings held the role of Global Head of Private Equity at UBS Wealth Management. Jennings received a BA in European Business Administration from the Middlesex Business School, London and a Diplom-Betriebswirt from the Fachochschule Reutlingen in Germany.