Houlihan Lokey Advises MG Stover & Co.

Houlihan Lokey is pleased to announce that MG Stover & Co. has been acquired by PolySign, Inc. The transaction closed on April 22, 2022.

The transaction creates the industry’s first vertically integrated provider of custody, trading, and fund administration services for cryptocurrencies and digital assets, enabling institutional investors to access this multitrillion-dollar market. Alongside the acquisition, PolySign also announced a Series C round of funding from new and existing investors, including Soros Fund Management, Cowen Digital, Brevan Howard, GSR, and others.

MG Stover is the industry leader in digital asset fund administration, with an impressive institutional client base and more than $40 billion in digital assets under administration, the world’s largest by a wide margin. MG Stover delivers world-class solutions for hedge funds, private equity funds, and venture capital funds, including specialized fund accounting, treasury management, KYC/AML due diligence, and offshore compliance. MG Stover has also built a leading proprietary back-office data aggregation and reconciliation software that supports the reporting process of hundreds of digital asset funds.

PolySign is a transformative financial technology company providing institutional investors with cutting-edge blockchain-enabled infrastructure in support of digital assets across the capital markets and payments sectors. PolySign’s New York–regulated custodian, Standard Custody & Trust Company, is a next-generation qualified custodian offering novel, patented technology for securing secret keys.

Houlihan Lokey served as the exclusive financial advisor to MG Stover and assisted in initiating, marketing, structuring, and negotiating the transaction on its behalf.

The transaction highlights Houlihan Lokey’s leading Fintech advisory practice and builds on growing track records in both the fund administration and crypto sectors. Other relevant Houlihan Lokey transactions include Colmore’s sale to Preqin, E78 Partners’ sale to Further Global, ETC’s sale to Peak6/Apex Clearing, SharesPost’s sale to Forge, and B2C2’s sale to SBI Holdings.