Mercer Advisors, the Denver-based registered investment advisor with $111 billion in client assets, has completed a $1.9 billion refinancing in its first foray into the broadly syndicated loan market. The firm expects the move to reduce interest expenses by $35 million to $40 million in 2027, freeing up capital for client services, organic growth, and acquisitions.
The new financing package replaces Mercer's existing private debt with a seven-year term loan B and a five-year, $340 million revolving credit facility. Goldman Sachs led the transaction, which Mercer said was significantly oversubscribed. The interest rate on the new loan is 1.75 percentage points lower than the previous debt, according to the firm.
S&P Global Ratings, which assigned Mercer a B rating with a stable outlook in September 2026, noted the package includes a $1.65 billion term loan and a $250 million delayed draw term loan. The agency expects Mercer's adjusted debt-to-EBITDA to exceed 7x at closing before easing to between 6x and 7x through 2027, reflecting the firm's continued acquisition appetite.
Dave Welling, Mercer's CEO, said the move to public debt markets marks a milestone for the firm. "We're now truly institutional size with enterprise strength," he said. "Going to the public markets for debt is a natural stepping stone." He emphasized that the firm's organic growth rate, averaging more than 30% annually, made the offering attractive to investors.
Mercer is not alone in this strategy. In September 2025, EP Wealth Advisors secured a $400 million seven-year term loan and a $100 million revolver to pay down debt and fund acquisitions. Merit Financial Advisors also expanded its credit line in 2025 with better terms, aided by minority investor Constellation Wealth Partners. Beacon Pointe, a $74 billion RIA, closed a $1.2 billion debt raise in October 2026, earmarking $80 million for M&A.
The trend reflects a broader shift from private credit to syndicated bank loans. Bloomberg reported in September that $19.5 billion of private debt was refinanced into the syndicated market in 2026, compared with $9.2 billion moving in the opposite direction, citing JPMorgan and KBRA DLD data.
Welling said acquisitions rank third in Mercer's capital allocation priorities, behind client services and organic growth. The firm is adding over $1 billion in new client assets monthly and has hired nearly 400 people in 2026. It is also expanding its estate planning and tax teams. "Serving clients and adding new clients come first," he said. "M&A strictly comes third."
Mercer completed 18 acquisitions in 2025 and expects a similar number by the end of 2026. This year's deals are skewed toward tax-only firms and expanded family office businesses. Welling noted that 15 of the 2025 acquisitions are growing faster than before joining Mercer.
The refinancing comes as RIA M&A volume fell 17% in the third quarter, according to DeVoe & Company, with consolidators handling 53% of deals through September 2026. S&P said Mercer's private equity owners—Altas Partners, Genstar Capital, Oak Hill Capital, and GIC—are likely to maintain a high tolerance for leverage as acquisitions continue.
