Genstar Capital Places Mercer Advisors on the Block

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Genstar Capital, a non-public fairness agency with investments within the monetary providers house, has put Mercer Advisors, a registered funding advisor with over $16 billion in shopper property, up on the market, in accordance with a supply acquainted with the funding banking group. The information was first reported by Buyouts Insider.

Chris Tofalli, a spokesman for each Mercer and Genstar, declined to remark.

Genstar, which owns 75% or extra of the RIA, employed Goldman Sachs to advise on the sale, the identical workforce that suggested Kestra Monetary on its sale to Warburg Pincus. Lovell Minnick, Mercer’s earlier majority proprietor, nonetheless has a small stake within the RIA of lower than 25%, in accordance with its Kind ADV.

Pitchbooks went out final week to roughly a dozen potential consumers, most of whom have been different non-public fairness companies; however in addition they went to 1 or two strategic acquirers, the supply instructed WealthManagement.com. Preliminary bids are due in two weeks.

Mercer is searching for 15 to 16 instances pro-forma, run-rate EBITDA, which is at the moment at $50 million, in accordance with Buyouts.

Genstar acquired a majority curiosity in Mercer in March 2015. Since then, the RIA has been on an acquisition tear, with aspirations to turn into a nationwide model. In 2017, the agency introduced on Dave Welling, who grew Black Diamond right into a tech powerhouse, to guide the agency so founder David Barton may deal with mergers and acquisitions technique.

Simply in 2019, Mercer acquired 4 smaller RIAs, including a complete of $1.2 billion in property beneath administration.

“They’ve already consolidated the branding; they’re actually consolidating lots of the again workplace,” the supply stated. “They’re actually the one main, in my view, nationwide possibility.”

Genstar owns a number of companies within the wealth administration house, together with Cetera Monetary Group, a community of impartial dealer/sellers, which it acquired final summer season. 

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