AssetMark Financial (NYSE: AMK) shares dropped by 1.7% before the market opened. This happened because the company announced that it’s going to be bought by a private equity firm called GTCR in a deal worth $2.7 billion. In this deal, each shareholder of AssetMark will receive $35.25 for each share they own, and GTCR will own the entire company.
The company’s board of directors has all agreed to this deal and is advising the shareholders to accept it too. AssetMark Financial is a platform used by more than 9,300 financial advisors and over 257,000 investor households. This acquisition is expected to be finalized in the fourth quarter of the year. Once it’s complete, AssetMark’s common stock won’t be traded on any public stock exchange anymore.
Key Points:
- Stock Price Drop: AssetMark Financial’s shares fell by 1.7% before regular trading hours. This decline occurred due to the announcement of the company’s acquisition by a private equity firm.
- Acquisition by GTCR: GTCR, a private equity firm, has agreed to acquire AssetMark Financial in a deal valued at $2.7 billion. This means GTCR will purchase all outstanding shares of AssetMark.
- Shareholders’ Compensation: Each shareholder of AssetMark will receive $35.25 in cash for each share they own as part of the acquisition deal.
- Board Approval: The board of directors of AssetMark has unanimously approved the acquisition and recommends that shareholders also approve it.
- Company Overview: AssetMark Financial provides a platform for financial advisors, serving over 9,300 advisors and more than 257,000 investor households.
- Closing Timeframe: The acquisition is expected to be finalized in the fourth quarter of the year.
- Delisting from Public Markets: After the acquisition is complete, AssetMark’s common stock will no longer be traded on any public stock exchange.
About AssetMark Financial
- Financial Advisory Solutions: AssetMark provides solutions and guidance to support financial advisors in managing their clients’ futures effectively.
- Complexity Management: As wealth grows and investment options become more intricate, AssetMark helps advisors stay ahead with dynamic solutions.
- Practice Advancement: The services are tailored to help advisors progress their practice, regardless of size, goals, or specialty.
- Enhanced Client Experience: AssetMark offers administrative support, investment research, and client communication tools to allow advisors more time to focus on clients’ unique needs.
These points highlight AssetMark’s commitment to empowering financial advisors with the tools and support necessary to excel in their field.
About GTCR
- Company Name: GTCR LLC
- Industry: Private Equity
- Founded: 1980
- Headquarters: Chicago, Illinois, USA
- Focus: The firm specializes in leveraged buyout, leveraged recapitalization, growth capital, and rollup transactions. It primarily invests in high-growth industries such as financial services & technology, healthcare, information services & technology, and growth business services.
- Investments: GTCR has invested more than $15 billion in over 200 companies.
- Assets Under Management (AUM): $35 billion as of 2023
- Employees: 154 as of 2023
Summary
