Mercer Advisors is bringing in a new private equity investor as part of a recapitalization deal meant to fuel its growth-through-acquisition strategy.
The Denver-based registered investment advisor with $48 billion in assets under management announced Tuesday that Altas Partners, a private equity firm that operates in Canada and the U.S., would join Genstar Capital and Oak Hill Capital on Mercer’s roster of financial backers. More than 300 employees of Mercer also have equity in the company.
The deal is expected to raise more than $1 billion in common equity and bring Mercer's valuation above $3 billion, according to a spokesperson.
The transaction is expected to close by the third quarter. Mercer declined to disclose additional details about the deal.
Genstar first invested in Mercer in 2015 when the RIA managed less than $5.7 billion. The company grew to $16.5 billion in 2019, when Oak Hill bought in as part of a recapitalization deal, acquiring a stake from Genstar and Lovell Minnick Partners, which exited.
“We have had an outstanding partnership with Genstar and Oak Hill for many years and chose Altas as our newest strategic investor because they believe in our mission, purpose, and strategy and are committed to support continued investment in capabilities that will allow us to enhance the way we serve our clients,” Dave Welling, CEO of Mercer Advisors, said in a statement.
Much of Mercer's growth has come by acquiring other wealth management firms. It has completed 75 acquisitions since 2016, growing its presence to 80 locations and nearly 900 employees. On Tuesday, Mercer acquired RMR Wealth Advisors, a Madison, Wisconsin-based firm with $350 million in AUM.
“Through its leadership, operational excellence and strategic acquisitions, Mercer Advisors has rapidly scaled and established a leading position in a fragmented industry, all while staying true to its client-centric culture,” Paul Emery, a partner at Altas, said in a statement. “This investment aligns extremely well with our distinctive strategy of identifying one or two high quality businesses each year that we believe are positioned to grow meaningfully and deliver lasting value to our partners.”
Raymond James served as the lead financial advisor on the deal.
Janus Henderson Investors research reveals demand for transparency, but lack of awareness of AI’s prevalence in the corporate world.
New research reveals rising expenses, forced early exits, and a widening gap between how long people live and how long their money lasts.
Firms continue their quest to attract and retain the best advisor teams.
A survey from TacticalMind AI found 69% of advisors say a high-quality AI platform that makes investment recommendations and constructs portfolios is worth $500 monthly, while research-only tools are valued closer to $250.
The alts tech provider's latest integration lets advisors query fund data and surface portfolio insights without leaving their primary workspace.
As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management
Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline
