BY Fraser Tennant
In a deal that expands the private equity company’s footprint in the financial services industry, GTCR is to acquire wealth management platform AssetMark Financial Holdings, Inc. for approximately $2.7bn.
Under the terms of the definitive agreement – which has been unanimously approved by the AssetMark board of directors – GTCR will acquire a 100 percent interest, with AssetMark stockholders receiving $35.25 per share in cash.
Since its inception, GTCR has focused on identifying and partnering with management leaders in core domains to acquire and build market-leading companies through organic growth and strategic acquisitions. To date, it has invested more than $25bn in over 280 companies.
“AssetMark is a leader in the wealth technology industry, combining a high-quality service orientation with innovative technology and products that financial advisers rely on to support their clients,” said Collin Roche, co-chief executive and managing director at GTCR. “We would like to congratulate Huatai Securities, AssetMark’s majority shareholder, on the substantial increase in the scale and profile of the business during its ownership.”
With approximately $117bn of assets on the platform, AssetMark delivers an extensive suite of technology solutions and service offerings which enable independent financial advisers to create and manage customised client investment portfolios, report and analyse performance, custody assets, attract new clients and grow their advisory business.
Serving over 9300 financial advisers and over 257,000 investor households, the AssetMark platform differentiates itself through its comprehensive end to end offering and the personalised, high-touch service model it delivers to its financial adviser customers.
“This transaction will deliver substantial value for our shareholders, supports key elements of our strategy, and creates new and exciting opportunities for our employees,” said Michael Kim, chief executive of AssetMark. “In partnership with GTCR, AssetMark will continue to focus on expanding offerings for our clients with new product capabilities while maintaining our reputation for excellent client service.”
The transaction is subject to customary closing conditions and required regulatory approvals and is expected to close in Q4 2024. Upon completion of the transaction, AssetMark’s common stock will no longer be listed on any public market.
Michael Hollander, managing director at GTCR, concluded: “GTCR expects to support AssetMark as the company pursues additional inorganic M&A opportunities to further expand the leading service offering it provides financial advisers.”
News: PE firm GTCR to buy wealth management platform AssetMark for $2.7 bln