FINALLY: Dennis Tito Sells Wilshire Associates to Private Equity Firms
Posted on 10/02/2020
Santa Monica-based Wilshire Associates Incorporated is an investment consulting firm that works for clients such as the California Public Employees Retirement System (CalPERS). Over the past two decades, Wilshire Associates has struggled to evolve in other spaces, such as investment technology and analytics. FactSet, BlackRock’s Aladdin system, and MSCI have all gained tremendous territory in the fintech space over Wilshire. In 1974, Wilshire Associates established the Wilshire 5000 index, which was once a popular index used by U.S. pensions, but has been overshadowed by S&P, Russell, and now MSCI indices.
Wilshire Associates was founded in 1972 and led by Dennis A. Tito, a former rocket scientist. The Wilshire index was founded by Tito and John O’Brien. In 1975, O’Brien and others left Wilshire to join another company, and Tito and his wife, Suzanne, bought them out and name the company Wilshire. In the 1980s, Wilshire recommended index funds to clients. Tito made millions using his scientific methodology and selling advisory services to pensions. In the 1990s and in the 2010s, Wilshire was impacted by numerous executive departures. Tito eventually divorced his wife Suzanne and later bought Suzanne’s ownership in Wilshire.
Private investment firm CC Capital and another private equity firm, Motive Partners, inked a deal to buy Wilshire Associates.
Upon closing of the transaction, Dennis Tito will step down from his roles as Chief Executive Officer and Chairman, and John Hindman will also step down from his roles as President and Vice Chairman, with Jason Schwarz continuing to lead the investment and portfolio analytics activities as President and Chief Operating Officer. The transaction, which is subject to customary closing conditions, including required approvals, is expected to close by the end of 2020.
New York-based CC Capital Partners was founded in late 2015 by Chinh Chu, a former Senior Managing Director and Co-Head of Private Equity at Blackstone Group. Motive Partners is a specialist private equity firm with offices in New York City and London, focusing on control-oriented growth equity and buyout investments in software and information services companies based in North America and Europe.
