Houlihan Lokey Advises bfinance

Houlihan Lokey is pleased to announce that bfinance, a portfolio company of Baird Capital (Baird), has completed a management buyout supported by Beach Point Capital Management. The transaction completed in February 2023.

Founded in 1999, bfinance first rose to prominence amongst pension funds and other institutional investors for its innovative approach to manager selection. Today, the team also provides a broad range of modular services across portfolio design, risk, monitoring, and more. Recent years have brought particular developments in ESG/impact advisory, fee reviews, and operational risk, with several new services launched by the rapidly growing Portfolio Solutions division as well as enhancements to preexisting services.

bfinance has enjoyed significant growth through recent challenging conditions. Both the pandemic and the subsequent macroeconomic climate have brought new opportunities for the tech-enabled consultancy to assist pension funds, charitable foundations, university endowments, insurers, wealth managers, and other clients. The firm’s revenues have increased by c. 70% since 2018, with particularly strong growth in the Private Markets and Portfolio Solutions divisions.

The transaction preserves the firm’s position as a pure-play global investment consultant—an “increasingly rare breed,” according to Pensions & Investments, following a 15-year period when many firms consolidated, merged, and launched asset management services.

bfinance’s ability to remain a stand-alone investment consultant is largely due to its differentiated model, technological capabilities, and fee structures that are designed to minimise the cost burden on investors.

Houlihan Lokey served as the financial advisor to Baird and bfinance. This most recent transaction further strengthens Houlihan Lokey’s leadership in the European asset and wealth management sectors.