In a significant move within the wealth management industry, AssetMark Financial Holdings, Inc., a prominent technology platform for financial advisors, has agreed to be acquired by GTCR, a leading private equity firm known for its investments in financial technology and wealth management. The agreement terms dictate that AssetMark stockholders will receive $35.25 per share in cash, summing up to a total equity valuation of approximately $2.7 billion. This acquisition not only underscores GTCR’s investment prowess but also marks a pivotal phase in AssetMark’s growth trajectory.

The acquisition has received unanimous approval from AssetMark’s Board of Directors, who have recommended the transaction to its stockholders. The deal was swiftly ratified through written consent by stockholders representing a majority of the outstanding voting interests, indicating strong support from the company’s leadership and investor base.

Located in Concord, California, AssetMark is renowned for its substantial influence on the wealth management technology sector, managing approximately $117 billion of assets on its platform. The company provides a comprehensive suite of services and technology solutions that enable independent financial advisors to manage client investment portfolios efficiently, attract new clients, and grow their advisory businesses. Over 9,300 financial advisors and 257,000 investor households benefit from AssetMark’s offerings, highlighting its critical role in the advisory landscape.

Michael Kim, CEO of AssetMark, remarked on the acquisition, “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.” The deal is expected to deliver substantial value to shareholders, supporting key business strategies and fostering new opportunities for employees and clients alike. GTCR’s partnership is anticipated to expand AssetMark’s product offerings and enhance its high-quality client service, continuing its legacy of innovation and customer focus.

Collin Roche, Co-CEO and Managing Director at GTCR, commented on the acquisition’s strategic fit, noting AssetMark’s leadership in combining high-quality service with innovative technology products essential for financial advisors.

The transaction is slated for closure in Q4 2024, pending customary closing conditions and regulatory approvals. Upon completion, AssetMark’s common stock will be delisted from public trading. Notable financial and legal advisors involved in facilitating this deal include Morgan Stanley & Co. LLC, UBS Investment Bank, Barclays, and law firms Davis Polk & Wardwell LLP and Kirkland & Ellis LLP.

The acquisition of AssetMark by GTCR represents a strategic enhancement in GTCR’s investment portfolio, particularly in wealth management technologies. This deal not only solidifies GTCR’s standing in financial services but also promises substantial advancements in service quality and technology for AssetMark’s clientele. The emphasis on expanding product offerings and the potential for pursuing further M&A opportunities should position AssetMark well for future growth and innovation in the industry.

  AssetMark acquisition, AssetMark Financial Holdings, financial advisors platform, GTCR, GTCR private equity, investment in fintech, wealth management technology