Mesirow Assumes Near North Accounts
By Mark E. Ruquet
NU Online News Service, Aug. 22, 4:44 p.m. EDT ? Near North National Group has found another firm to take over some of its brokerage operations, announcing that Mesirow Insurance Services, Inc., is taking over a portion of Near North's accounts.
In a statement, Mesirow said it reached an agreement with Near North "to assume the accounts of Near North's Chicago office," and to hire some of its employees.
Both firms are based in Chicago.
No terms were announced nor did Mesirow say what specific accounts are being acquired.
A spokesperson with Near North confirmed the deal, but released no financial terms. She said the transaction is not an acquisition. Mesirow is taking over Near North's Chicago brokerage business and it will be placed in the Mesirow name, she said. No brokerage business in any other city is affected, she noted.
A call to Mesirow was not returned.
There have been two previous efforts for an acquisition of North by other Chicago-based firms, but both fell by the wayside in the past few months.
The first was by Frontenac Company LLC, a privately held equity firm and the second by Hub International Ltd. In both cases, the parties appeared to be very close to a deal, only to see it called off.
The troubled broker's need for a new partner began when Near North's head, Michael Segal was arrested in January of last year and charged with embezzling more than $20 million from a premium fund trust account over a 12 year period.
In May, the firm was indicted on racketeering and mail fraud charges stemming from Mr. Segal's alleged actions. The firm has seen a loss in accounts and employees that has drained the firm of revenues.
Mesirow Financial, the parent of Mesirow Insurance Services, is a financial services firm with more than $5 billion in assets.
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