Founder and CEO Mark Klein to step away from day-to-day operations
PHILADELPHIA – March 4, 2024 – PCS Retirement (“PCS” or “the Company”), a leading retirement plan recordkeeper focused on the ERISA and Non-ERISA markets, today announced it received a majority investment from funds managed by Lee Equity Partners, LLC (“Lee Equity”), a growth oriented middle market private equity firm. As part of the transaction, LLR Partners will exit its investment in PCS. Scott David will join as CEO. Terms of the transaction were not disclosed. Founder, CEO, and industry veteran Mark Klein will be stepping away from day-to-day operations of PCS Retirement and will remain a valuable member of the Board of Directors.
Founded in 2001, PCS Retirement delivers high-quality retirement plans to business owners, school districts, municipalities, not-for-profits, and individuals. The Company’s mission is to help close America’s retirement gap by equipping financial advisors with the most powerful, trusted, and easy-to-use retirement solutions available anywhere.
“We established PCS Retirement with the goal of building a next generation recordkeeper with no hidden agenda. Our vision for complete transparency has allowed us to be a leader in the retirement plan industry with significant momentum and opportunities ahead,” said Mark Klein, Founder of PCS Retirement. “We are very appreciative of LLR’s partnership and are excited to welcome Lee Equity as our financial sponsor and Scott David as CEO. Lee Equity deeply understands the value of our employee-centric business and appreciates our tremendous growth potential, and I’m confident that the addition of Scott will lead us well as we evolve into our next chapter.”
Scott David is a proven leader with more than 35 years of retirement services industry experience, including serving as the Head of Individual & Retirement Plan Services and an Executive Committee Member at T. Rowe Price and President of U.S. Retirement Services at Fidelity.
“Mark, the entire management team and I share a common view of the needs of the small business community and non-ERISA 403b space and understand the opportunity available to innovate on how these markets are served,” said Scott David. “I am looking forward to building on the strong foundation that Mark and his incredible team have laid.”
PCS believes Lee Equity’s partnership will help accelerate new business sales and expand existing relationships, optimize the service and digital experience for customers, and support the Company’s M&A efforts.
“PCS Retirement is a leading retirement platform with a unique go-to-market strategy and track record of innovation,” said Danny Rodriguez, Partner at Lee Equity. “There’s great potential for the Company still ahead, and we are excited to partner with Scott and the Company’s leadership to capitalize on the many opportunities to grow the business.”
“LLR is grateful to have been part of PCS Retirement’s journey. Together, we were able to expand product capabilities and build upon the Company’s market position. We thank the management team for their trusted partnership and are excited to see PCS Retirement’s success continue with Lee Equity as their new financial sponsor,” said Sam Ryder, Principal with LLR Partners.
PCS Retirement employees will maintain a meaningful ownership interest.
Raymond James served as the exclusive financial advisor to PCS Retirement on this transaction. Waller Helms Advisors served as financial advisor to Lee Equity. Ropes & Gray acted as legal counsel to Lee Equity.
About PCS Retirement
PCS Retirement is a leading independent and conflict-free retirement services platform automating the sale, design, valuation and management of retirement plans. PCS offers its services to channel partners to deliver a customizable platform ideally suited for registered investment advisors, independent broker dealers and investment management firms serving the retirement ecosystem.
About Lee Equity Partners
Lee Equity Partners, LLC is a New York-based private equity firm that partners with successful management teams to build companies with strong growth potential. Lee Equity targets equity investments of $50 million to $150 million in middle-market control buyouts and growth capital financings in companies with enterprise values of $100 million to $500 million that are located primarily in the United States. The firm invests within three distinct sectors, healthcare services, financial services, and business services, where the team has developed deep relationships over decades. More information is available at www.leeequity.com.
About LLR Partners
LLR Partners is a private equity firm investing in technology and healthcare businesses. We collaborate with our portfolio companies to identify and execute on key growth initiatives and help create long-term value. Founded in 1999 and with more than $6 billion raised across seven funds, LLR is a flexible provider of equity capital for growth, recapitalizations and buyouts. Learn more at https://www.llrpartners.com/.
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