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. 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. It is the second strategic acquisition the buyer has closed this quarter and its largest by AUM.
The combined entity is expected to manage just over four billion dollars when the transaction closes. 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. Talent retention will be the principal concern, executives said in an internal memo reviewed by InvestLin.
The detail
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. Custodial rivals were watching closely, hoping to scoop up assets in any post-merger turbulence. Clients have been notified by letter and an email follow-up; the firm expects minimal attrition. Compliance staff inside the acquirer have been preparing for the integration since early March.
“You can buy AUM. You cannot buy CFPs in their early thirties.” Industry recruiter
Regulatory filings are not expected to slow the timeline; the deal is expected to close in the third quarter. 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. Talent retention will be the principal concern, executives said in an internal memo reviewed by InvestLin.
What it means for advisors
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. 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.
- Compensation for the senior partners is rumored to be tied to a five-year retention schedule. Both sides described the transaction as transformational, but neither would discuss financial terms on the record.
- The transition team has been on site since Tuesday, walking through technology integration with the home-office staff. Compensation for the senior partners is rumored to be tied to a five-year retention schedule.
- The transition team has been on site since Tuesday, walking through technology integration with the home-office staff. 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. Insiders say the firm has been quietly building out its alternatives platform since last summer. The deal is the latest in a wave of consolidation that has reshaped the channel over the past three years.
