One of the oldest private futures brokers is taking on partners in an attempt to capture more market share as futures continue to display dynamic growth. R.J. O’Brien & Associates, Inc. (RJO), has reached a definitive agreement with private equity firms Spectrum Equity Investors and Technology Crossover Ventures (TCV) to sell a combined majority stake in the company to the two firms. The O’Brien family will retain a substantial minority ownership in the company according to a release in which the terms of the transaction were not disclosed.
“The transaction is emblematic of what we are trying to accomplish,” says RJO CEO Gerald Corcoran.
“[RJO President Colleen Mitchell] and I have had a very aggressive agenda for growth and we really have done well for the last six years but we want and our shareholders want to accelerate that growth plan. What we have done is partner with two really great private equity firms that can help accelerate our strategic plans and, paramount to us was, to remain independence and keep our management team in place.”
Both Corcoran and Mitchell stressed RJO will continue as it has but with more resources to execute its growth strategy. That strategy will include possible acquisitions and a greater international presence.
Corcoran says, “We really want to expand our reach globally. Both in attracting new customers overseas as well as expanding our market share in the foreign futures market space.”
The deal also raises the specter of an initial public offering, though Corcoran says, there are no plans for one as yet.
