Mercer International Advisors Inc. of Denver, Colo., mentioned Wednesday that it has acquired Regent Wealth Administration Group, Inc., an RIA based mostly in Woodbridge, Conn. that serves roughly 110 excessive web price households with AUM of about $300 million.
The addition permits Mercer, which was put up on the market by its majority proprietor Genstar Capital a month in the past, to extend its Northeast presence to 11 department places of work with $2.7 billion in AUM. Mercer now has three places of work in Connecticut and 43 complete with AUM over $16.5 billion.
Genstar acquired a majority curiosity in Mercer in March 2015. Since then, the RIA has been on an acquisition tear, with aspirations to turn out to be 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 concentrate on mergers and acquisitions technique.
Dan Seivert, CEO of Echelon Companions, the Manhattan Seaside, Calif., funding financial institution, wrote in an electronic mail Wednesday that “Mercer continues to take a proactive method to discovering and shutting offers,” including that regardless of being on the block, at the moment of heightened merger exercise the corporate nonetheless has to develop to impress potential suitors. “Simply because an organization places itself up on the market or registers for an IPO doesn't imply it might probably decelerate its acquisition machine,” he mentioned. “It's really fairly the opposite. Consumers need to see an unabated continuation of inorganic development, and if the vendor can present that, they may get pleasure from larger valuation multiples.” ‘
In keeping with San Francisco-based consulting agency and funding financial institution DeVoe & Firm’s second quarter RIA Dealbook report, which was revealed in July, Mercer was an energetic participant in M&A within the first half of 2019 with 4 acquisitions of RIA’s, focusing on smaller and mid-size advisors.
Regent was based by Alan P. Weiss in 1987.
Mercer is privately held with over 360 workers. Lovell Minnick, its earlier majority proprietor, owns lower than 25% of the corporate. Genstar, the bulk proprietor, employed Goldman Sachs to advise on Mercer’s sale. Mercer is looking for 15j to 16 occasions professional forma, run-rate EBITDA, which is at the moment about $50 million, in response to Buyouts Insider.
Genstar owns a number of corporations within the wealth administration area, together with Cetera Monetary Group, a community of impartial dealer/sellers, which it acquired final summer time.
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