Genstar Capital has agreed to acquire a majority stake in Mercer Advisors from Lovell Minnick Partners. No financial terms were disclosed for the transaction that is expected to be completed in the second quarter of this year. Moelis & Company served as exclusive financial advisor to Mercer on the deal. Based in Santa Barbara, California, Mercer Advisors is a provider of wealth management services.
SAN FRANCISCO, March 25, 2015 – Genstar Capital, a leading middle market private equity firm based in San Francisco, today announced that it has signed a definitive agreement to partner with management in acquiring a majority interest in Mercer Advisors from Lovell Minnick Partners, a private equity firm which specializes in lower middle-market investments in the financial services industry.
Mercer is a leading registered investment advisor with a full suite of wealth management services and over 30 years of experience. The Company services primarily the mass-affluent and high-net-worth clients and today has a strong base of individual clients with assets of nearly $6 billion. Mercer Advisors offers comprehensive wealth management solutions, including: financial planning, investment management, tax management, retirement income and benefits planning, and estate planning.
Genstar’s operational expertise and industry experience will be valuable in assisting the company in its continued expansion, both in terms of scale and service offerings. According to David H. Barton, President and Chief Executive Officer of Mercer Advisors, the transaction provides seamless continuity for Mercer Advisors and its clients. “This acquisition benefits our clients and employees, as well as the long-term strategy of our firm and provides for continuing a renewed private equity partnership first established with Lovell Minnick. Genstar has a long history of supporting its portfolio companies and shares our belief in a client-centric culture and holistic service model. Genstar’s capital investment will allow us to further invest in growth, both organically and through acquisitions, and elevate the value proposition we offer our current and future clients.”
Anthony J. Salewski, Managing Director of Genstar, added: “Genstar has followed Mercer Advisors for a number of years, and this investment demonstrates our continued commitment to investing in targeted growth segments within the financial services industry. Mercer has delivered consistent growth over the past several years, and we look forward to partnering with Dave and his management team to accelerate that trajectory.”
Jeffrey D. Lovell, Chairman of Lovell Minnick Partners, noted: “We have enjoyed working closely with the Mercer management team over the past seven years to support the Company as it has grown into the leading business it is today. We are pleased management has formed a partnership with Genstar, whose interests and plans align well with the Company’s strategy.”
The transaction is expected to be completed in the second quarter of 2015. Mercer Advisors is currently a portfolio company of Lovell Minnick Partners. Moelis & Company acted as exclusive financial advisor to Mercer.
About Mercer Advisors
Established in 1985, Mercer Advisors Inc. is a total wealth management firm that provides fee-only comprehensive investment management, financial planning, family office services, retirement benefits and distribution planning, estate planning, and tax management services to affluent individuals. Mercer Advisors is the parent company of Mercer Global Advisors, one of the largest Registered Investment Advisors and financial planning firms in the U.S. with nearly $6 billion in assets under management and more than 4,300 clients. Headquartered in Santa Barbara, California, Mercer Advisors is privately held, has over 140 employees and operates nationally with 15 branch offices across the country. For more information about Mercer Advisors, visit www.merceradvisors.com.
About Genstar Capital
Genstar Capital (www.gencap.com) is a private equity firm that has been actively investing in high quality companies for more than 20 years. Based in San Francisco, Genstar works in partnership with its management teams and its network of strategic advisors to transform its portfolio companies into industry-leading businesses. Genstar manages funds with total capital commitments of over $3 billion and targets investments focused on selected sectors within the financial services, software, healthcare, and industrial technology industries. The acquisition of Mercer Advisors represents Genstar’s third transaction in investment management. Other financial services portfolio companies include Altegris, an asset manager focused on alternative investment solutions; Acrisure, a leading Midwest retail insurance brokerage; Asset International, a provider of critical data, business intelligence, and information services to the global investment management industry; and AssetMark, a leading provider of investment management, client relationship tools, and practice management programs to financial advisors.
About Lovell Minnick Partners
Lovell Minnick Partners LLC is a private equity firm with expertise in investing in the financial and related business services sectors. Lovell Minnick provides developing companies with equity capital to support private company recapitalizations, leveraged buyouts, and pursue growth initiatives. Since its inception in 1999, Lovell Minnick Partners has raised over $1.2 billion in committed capital and has completed investments in over 30 companies. Targeted investment areas include asset management, financial product distribution, insurance, banks, specialty finance, and related technology and business services. Lovell Minnick has a demonstrated track record of increasing value through a variety of methods including internal investment, acquisitions, and prudent use of leverage.