AssetMark Financial Holdings (a leading wealth management technology platform for financial advisors) announced that it has signed a definitive agreement to be acquired by GTCR (a leading private equity firm with expertise in financial technology, wealth, and asset management). AssetMark stockholders will receive $35.25 per share in cash, representing a total equity valuation of about $2.7 billion. Under the terms of the deal, GTCR will buy a 100% interest in the company.
AssetMark’s Board of Directors unanimously approved the deal and recommended it to its stockholders. After the Board of Directors approved the transaction, the definitive agreement was signed, and the transaction was approved with the written consent of stockholders representing a majority of the company’s outstanding voting interests.
Based in Concord, California, AssetMark is a leading wealth management tech company with about $117 billion of assets on the platform. The company offers an extensive suite of technology solutions and service offerings that enable independent financial advisors to create/manage customized client investment portfolios, report/analyze performance, custody assets, attract new clients, and grow their advisory business.
AssetMark is differentiated by its comprehensive end-to-end offering and the personalized, high-touch service model it delivers to its financial advisor customers. And the AssetMark platform serves over 9,300 financial advisors and over 257,000 investor households.
The deal is subject to customary closing conditions and required regulatory approvals and is expected to close in Q4 2024. And upon completion of the transaction, AssetMark’s common stock will no longer be listed on any public market.
Morgan Stanley served as exclusive financial advisor to AssetMark, and Davis Polk & Wardwell provided legal counsel. UBS Investment Bank and Barclays worked as co-lead financial advisors to GTCR and are providing debt financing support for the transaction. BofA Securities and Jefferies also served as financial advisors. Kirkland & Ellis LLP provided legal counsel and Paul Hastings LLP provided regulatory legal counsel.
The consummation of the deal is not subject to any financing condition. The deal will be financed with a credit facility and equity capital from funds affiliated with GTCR.
KEY QUOTES:
“This transaction is a testament to the support and commitment of Huatai over the past seven years, and the hard work of the entire AssetMark team. Together with Huatai, we have accomplished remarkable results, and we look forward to partnering with GTCR on the next phase of growth. This transaction will deliver substantial value for our shareholders, supports key elements of our strategy, and creates new and exciting opportunities for our employees. In partnership with GTCR, we will continue to focus on expanding offerings for our clients with new product capabilities while maintaining our reputation for excellent client service.”
- Michael Kim, CEO of AssetMark
“AssetMark is a leader in the wealth technology industry, combining a high-quality service orientation with innovative technology and products that financial advisors rely on to support their clients. We would like to congratulate Huatai Securities, AssetMark’s majority shareholder, on the substantial increase in the scale and profile of the business during Huatai Securities’ majority ownership which began in 2016.”
- Collin Roche, Co-CEO and Managing Director at GTCR
“AssetMark was an important strategic investment for Huatai with the business growing substantially during our ownership tenure. Today’s transaction will deliver a strong financial return to Huatai’s shareholders. We appreciate the support from AssetMark’s customers, employees and management team and remain confident in the company’s future under GTCR’s ownership.”
- Yi Zhou, CEO of Huatai Securities
“We are highly enthusiastic about the opportunity to partner with Michael Kim and the AssetMark team. In addition to organic initiatives, GTCR expects to support AssetMark as the Company pursues additional inorganic M&A opportunities to further expand the leading service offering it provides financial advisors.”
- Michael Hollander, Managing Director at GTCR
