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. Insiders say the firm has been quietly building out its alternatives platform since last summer. The combined entity is expected to manage just over four billion dollars when the transaction closes. Regulatory filings are not expected to slow the timeline; the deal is expected to close in the third quarter.
The deal is the latest in a wave of consolidation that has reshaped the channel over the past three years. 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. Custodial rivals were watching closely, hoping to scoop up assets in any post-merger turbulence.
The detail
The transaction values the firm at roughly twelve times trailing EBITDA, according to people familiar with the matter. 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. The deal is the latest in a wave of consolidation that has reshaped the channel over the past three years. Insiders say the firm has been quietly building out its alternatives platform since last summer.
“Grid changes are how the wirehouses tell you what they want you to do next year.” Industry recruiter
Clients have been notified by letter and an email follow-up; the firm expects minimal attrition. Regulatory filings are not expected to slow the timeline; the deal is expected to close in the third quarter. Insiders say the firm has been quietly building out its alternatives platform since last summer. It is the kind of deal that says less about price than about positioning for the next cycle.
What it means for advisors
Regulatory filings are not expected to slow the timeline; the deal is expected to close in the third quarter. The combined entity is expected to manage just over four billion dollars when the transaction closes. Insiders say the firm has been quietly building out its alternatives platform since last summer. Compensation for the senior partners is rumored to be tied to a five-year retention schedule.
- The transaction values the firm at roughly twelve times trailing EBITDA, according to people familiar with the matter. Talent retention will be the principal concern, executives said in an internal memo reviewed by InvestLin.
- Both sides described the transaction as transformational, but neither would discuss financial terms on the record. It is the second strategic acquisition the buyer has closed this quarter and its largest by AUM.
- The transition team has been on site since Tuesday, walking through technology integration with the home-office staff. Clients have been notified by letter and an email follow-up; the firm expects minimal attrition.
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. It is the second strategic acquisition the buyer has closed this quarter and its largest by AUM. Compensation for the senior partners is rumored to be tied to a five-year retention schedule.
