New York private equity firm invests in Cleveland-based AML RightSource
New York private equity firm Clarion Capital Partners LLC on Monday, Aug. 21, announced it has made an investment in AML RightSource, a Cleveland company that provides clients with anti-money laundering, Bank Secrecy Act and financial crimes compliance services.
Specific terms of the investment, which closed last Friday, Aug. 18, were not disclosed. On the “About Us” page on its website, Clarion says it focuses “on equity investments in the range of $15-$50 million with enterprise values of $50-$200 million.”
Two current shareholders of AML RightSource, Frank Ewing and Paul Linehan, will maintain an ownership stake in the company and will lead it in partnership with Clarion. As part of the transaction, Ewing has been promoted to CEO of AML RightSource, while Linehan is its president.
A spokeswoman said via email that Clarion “now has a majority stake” in AML RightSource, and Ewing and Linehan “have meaningful ownership.”
AML RightSource has about 575 total full-time employees, including about 410 in Cleveland, according to the email.
Clarion said in a news release that the investment “will help AML RightSource to align even more closely with its customers in the banking, financial services and online payments industries, pursue new customers, and invest in its employees and internal infrastructure. AML RightSource expects to add new services and geographies as part of a long-term strategy to be a best-in-class solutions provider for its customers.
Eric Kogan, a partner with Clarion, said in a statement that AML RightSource “has an exceptional management team and an exciting future to enhance its leadership position in AML/BSA compliance services,” said Eric Kogan, a partner with Clarion Capital Partners. “We look forward to working with AML RightSource to sharpen its strategy and help the company grow.”
Ewing said the investment from Clarion “is a natural evolution of AML RightSource’s growth over the last several years. With this partnership, we expect to enhance our current service offerings to meet the needs of our growing customer base. We believe the transaction will allow us to continue on our successful path, which will benefit our employees as well.”
In addition to the Cleveland headquarters, AML RightSource has offices in Hudson and Phoenix.