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.
Canadian stocks are on a roll in 2025 as the country prepares to name a new Prime Minister.
Two C-level leaders reveal the new time-saving tools they've implemented and what advisors are doing with their newly freed-up hours.
The RIA led by Merrill Lynch veteran John Thiel is helping its advisors take part in the growing trend toward fee-based annuities.
Driven by robust transaction activity amid market turbulence and increased focus on billion-dollar plus targets, Echelon Partners expects another all-time high in 2025.
The looming threat of federal funding cuts to state and local governments has lawmakers weighing a levy that was phased out in 1981.
RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.
As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.
