GTCR set to snap up AssetMark

The private equity firm unveiled plans to take the TAMP provider private, valuing the company at $2.7B.

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.