Credit: Businesswire
GTCR, a private equity firm, announced that it has acquired Foundation Source (the “Company”). Foundation Source empowers people and companies to create a better world through philanthropy. As a provider of foundation management services, Foundation Source offers a configurable suite of administrative, compliance, advisory and technology solutions to support family, corporate and independent foundations.
In executing The Leaders Strategy, GTCR is partnering with wealth technology veteran Joseph Mrak III, who has joined Foundation Source as Chief Executive Officer. Mr. Mrak will work with existing management to invest in enhanced technology and product capabilities, and further support the philanthropic priorities of its clients. Mr. Mrak will also deepen partnerships and coordination with other parties in the wealth management and philanthropic ecosystem. Mr. Mrak has a long track record of business-building and value creation in the wealth technology industry. He was formerly Global Head of Wealth Solutions at Refinitiv, a leader in financial markets data and infrastructure. Previously, Mr. Mrak was Executive Chairman of Solovis, an institutional investment management platform servicing family offices, endowments, registered investment advisors (RIAs) and insurance firms, and served as CEO and Chairman of FolioDynamix, an integrated wealth management platform. Mr. Mrak succeeds existing Foundation Source President and CEO Sunil Garga, who will serve in an advisory capacity to Mr. Mrak and the Board of Directors during the transition.
Founded in 2000 and headquartered in Fairfield, Connecticut, Foundation Source is the market leader for private foundation administrative solutions. The Company provides technology-enabled administrative, compliance, tax and advisory solutions to private philanthropists, corporations and their foundations, supporting more than 2,000 foundations representing in excess of $20 billion in charitable assets. In 2022, Foundation Source administered charitable grants totaling more than $1.3 billion on behalf of its clients.
GTCR’s co-investors in the Foundation Source investment include notable colleges and universities, endowments, foundations and family offices that have been long-term investors in GTCR funds. The network of co-investors is expected to provide the Company with resources and insights to better serve its clients as well as to increase the Company’s connectivity to the broader non-profit and charitable giving community. Further, as part of the transaction, GTCR has committed significant capital to fund acquisitions, technology enhancements and organic growth opportunities that will expand Foundation Source’s product offerings and delivery, and enhance support for strategic channel partners, including private banks, trust companies, wealth managers and RIAs.
“Over the past two decades, Foundation Source has experienced exceptional growth, and has established itself as a leader in supporting charitable giving, providing critical resources to foundations and their donors,” said Collin Roche, GTCR Co-CEO and Managing Director. “We are pleased to partner with Joe Mrak, whose experience in building wealth technology businesses will be important as we further enhance the Company’s value proposition to clients and partners. We look forward to working with the entire Foundation Source team to continue the Company’s mission of supporting positive impact through philanthropic giving.”
“I’ve known the GTCR team for nearly a decade and we share a great enthusiasm for the opportunities at Foundation Source. The Company’s robust, cloud-based technology and impeccable customer service differentiate it within the industry. GTCR has a long history of investing in high caliber technology-focused businesses in wealth and asset management, and I know that they share my focus on driving positive change across all of their investments,” stated Joe Mrak. “I am also excited to partner with the broader Foundation Source team to advance the Company’s growth and impact as we expand our offerings and bolster our leadership position in private philanthropy.”
“Through exceptional client service, unique philanthropic expertise and insights, and a strong technology offering, Foundation Source is established as the market leader serving foundations. We believe there are exciting opportunities to expand into other charitable giving vehicles while leveraging the Company’s scale and reach. We are thrilled to be partnering with Joe to build on the Company’s history of success in serving this market,” added GTCR Principal, Kirk Smith.
Canaccord Genuity served as financial advisor and Greenberg Traurig LLP provided legal counsel to GTCR. Baird served as lead financial advisor and Lincoln International served as co-financial advisor to Foundation Source. K&L Gates LLP provided legal counsel to Foundation Source. Financial details of the transaction were not disclosed.
Source: GTCR
The preceding press release was provided by a company unaffiliated with NonProfit PRO. The views expressed within do not directly reflect the thoughts or opinions of the staff of NonProfit PRO.
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