One of the US wealth industry’s leading TAMP providers is about to be taken private.
Private equity firm GTCR has announced plans to acquire AssetMark for $2.7 billion, aiming to privatize the wealth management platform more than five years after its debut on the public market.
The deal announced Thursday, which is set to significantly enhance GTCR's presence within the financial services sector, values AssetMark at $35.25 per share in cash, reported Reuters.
That valuation represents a modest 1 percent premium over the stock's most recent closing price. Still, it’s more than 30 percent above its trading level prior to speculations about a potential sale circulating in the media. AssetMark’s stock experienced a 2 percent drop prior to the market opening following the announcement.
A leader in the wealth tech space, AssetMark offers a robust technology platform that supports financial advisors in managing and analyzing client investment portfolios.
This acquisition by GTCR, which oversees $40 billion in equity and has substantial holdings in sectors including healthcare, technology, and financial services, is poised to leverage AssetMark's innovative platform to expand its market reach.
AssetMark’s footprint in the wealth industry is not to be sniffed at, with more than 251,000 households and over 9,000 advisors captured in its customer base.
The deal will be financed through a combination of a credit facility and capital from funds associated with GTCR. The key financial advisors to the deal include Morgan Stanley for AssetMark, while UBS Investment Bank and Barclays are facilitating GTCR's financing efforts.
The acquisition is anticipated to close by the fourth quarter of this year, pending customary closing conditions and regulatory approvals. GTCR, founded in 1980 and based in Chicago, has a diverse portfolio that includes significant past investments in major firms such as Worldpay, which was sold to Fidelity National Information Services in a notable transaction last year.
Research reveals a 4% year-on-year increase in expenses that one in five Americans, including one-quarter of Gen Xers, say they have not planned for.
Raymond James also lured another ex-Edward Jones advisor in South Carolina, while LPL welcomed a mother-and-son team from Edward Jones and Thrivent.
MyVest and Vestmark have also unveiled strategic partnerships aimed at helping advisors and RIAs bring personalization to more clients.
Wealth management unit sees inflows of $23 billion.
Deal will give US investment bank a foothold in lucrative European market.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
