Insiders say the firm has been quietly building out its alternatives platform since last summer. Talent retention will be the principal concern, executives said in an internal memo reviewed by InvestLin. Compliance staff inside the acquirer have been preparing for the integration since early March. Regulatory filings are not expected to slow the timeline; the deal is expected to close in the third quarter. The transaction values the firm at roughly twelve times trailing EBITDA, according to people familiar with the matter.
The transaction values the firm at roughly twelve times trailing EBITDA, according to people familiar with the matter. It is the kind of deal that says less about price than about positioning for the next cycle. It is the second strategic acquisition the buyer has closed this quarter and its largest by AUM. Both sides described the transaction as transformational, but neither would discuss financial terms on the record.
The detail
Custodial rivals were watching closely, hoping to scoop up assets in any post-merger turbulence. Compliance staff inside the acquirer have been preparing for the integration since early March. The transaction values the firm at roughly twelve times trailing EBITDA, according to people familiar with the matter. Industry observers expect a small wave of follow-on deals from competitors. Regulatory filings are not expected to slow the timeline; the deal is expected to close in the third quarter.
“This is the busiest recruiting quarter we’ve had in three years, and the pipeline is only getting deeper.” Industry recruiter familiar with both firms
It is the second strategic acquisition the buyer has closed this quarter and its largest by AUM. It is the kind of deal that says less about price than about positioning for the next cycle. Insiders say the firm has been quietly building out its alternatives platform since last summer. Both sides described the transaction as transformational, but neither would discuss financial terms on the record.
What it means for advisors
It is the kind of deal that says less about price than about positioning for the next cycle. Both sides described the transaction as transformational, but neither would discuss financial terms on the record. Compensation for the senior partners is rumored to be tied to a five-year retention schedule. Regulatory filings are not expected to slow the timeline; the deal is expected to close in the third quarter.
- Clients have been notified by letter and an email follow-up; the firm expects minimal attrition. The combined entity is expected to manage just over four billion dollars when the transaction closes.
- Compliance staff inside the acquirer have been preparing for the integration since early March. Custodial rivals were watching closely, hoping to scoop up assets in any post-merger turbulence.
- Compensation for the senior partners is rumored to be tied to a five-year retention schedule. Compliance staff inside the acquirer have been preparing for the integration since early March.
Both sides described the transaction as transformational, but neither would discuss financial terms on the record. Compliance staff inside the acquirer have been preparing for the integration since early March. Compensation for the senior partners is rumored to be tied to a five-year retention schedule. The deal is the latest in a wave of consolidation that has reshaped the channel over the past three years.
