Financial Services Acquisitions in 2020

Mercer Global Advisors, a Denver-based national registered investment adviser, acquired Spokane-based wealth management firm Hart Capital Management, Inc., effective December 31, 2020. Hart's founder Craig W. Hart and a team of nine professionals (serving ~400 clients with ~$440M AUM) joined Mercer to gain scale, infrastructure and expanded service capabilities.

Mercer Global Advisors (Mercer Advisors) has acquired Rowland Carmichael Advisors, Inc. (RCA), a Scottsdale-based wealth management and family office firm. The deal (closed Dec 31, 2020) brings RCA’s nine-person team and its retirement-plan capability into Mercer’s existing Scottsdale office to expand Mercer’s Arizona presence and augment its ERISA/retirement plan business.

Merit Financial Group, a hybrid RIA based in Alpharetta, Georgia, received a strategic growth investment from Wealth Partners Capital Group (WPCG) and a group of supporting investors led by private equity firm HGGC. The capital and partnership will support Merit's organic growth and accelerate its M&A strategy to expand its national footprint and advisor partnerships; Merit's management entered into long-term employment agreements and the deal closed December 31, 2020.

Mercer Global Advisors (Mercer Advisors), a Denver-based registered investment adviser, acquired McGee Wealth Management, a Portland, Oregon wealth management firm, effective December 31, 2020. The transaction brings roughly 15 McGee team members and approximately $815 million AUM (serving ~800 clients) into Mercer as part of a succession plan and to augment Mercer’s Portland presence.

Constellation Affiliated Partners, a New York-based insurance consolidator platform backed by RedBird Capital Partners, has acquired Coastal Insurance Underwriters and Cybercom. The deal brings Coastal's program administration and underwriting capabilities for condominium and homeowner associations together with Cybercom's web-based quoting/underwriting platform to expand Constellation's product and technology offerings in the U.S. market.

U.S. Retirement & Benefits Partners (USRBP) announced that TSA Consulting Group (TSACG), a Florida-based third-party administrator and retirement plan compliance specialist, has joined the USRBP network. TSACG, which serves more than 3,000 employer groups and administers over $45 billion in assets, will integrate with USRBP to strengthen the firm's capabilities and position in the K-12 marketplace; Raymond James served as TSACG's exclusive financial advisor.

Farmers & Merchants Bancorp, Inc. (F&M) agreed to acquire Ossian Financial Services, Inc. (OFSI), the holding company of Ossian State Bank, in a cash deal valued at approximately $20.0 million (approximately $67.71 per share). OFSI operates two full-service offices in northeast Indiana with about $122 million in assets; the transaction, unanimously approved by both boards and subject to regulatory and shareholder approvals, was expected to close in Q2 2021.

AEGIS Hedging Solutions has acquired Risked Revenue Energy Associates (R^2), a specialty commodity trading advisor focused on energy hedging and patented analytics. The acquisition expands AEGIS' analytics and advisory capabilities, integrating R^2's team and intellectual property into AEGIS' SaaS and advisory platform to better serve energy-sector clients.

Corsair Capital LLC acquired a majority stake in IDIQ, a tech-enabled provider of credit reporting, identity theft monitoring and data breach response services, on December 16, 2020. Corsair will partner with CEO Scott Hermann and other existing investors to accelerate growth, expand product breadth and scale IDIQ's customer base.

Rothschild & Co Bank AG, the Swiss wealth management subsidiary of Rothschild & Co, has acquired Geneva-based private bank Banque Pâris Bertrand, strengthening Rothschild’s presence in the Swiss market and adding complementary asset management capabilities. The deal (first announced December 2020) increases Rothschild’s Swiss client assets to over CHF 20–22 billion and was completed following shareholder and regulatory approvals.

IBM acquired Montreal-based fintech Expertus Technologies Inc., strengthening IBM's hybrid cloud and AI-powered digital payments and treasury management capabilities. The deal brings Expertus' payments-as-a-service platform and SWIFT processing expertise into IBM Global Business Services to expand end-to-end payments solutions for financial institutions.

Raymond James Financial, Inc. has acquired NWPS Holdings, Inc., doing business as NWPS or Northwest Plan Services, a Seattle-based provider of retirement plan recordkeeping, administration, consulting and actuarial services. The transaction, which retains NWPS's management team and employees, expands Raymond James' retirement services capabilities for its advisors and clients and follows WestView Capital Partners' exit of its investment.

Allworth Financial has agreed to acquire Bastoni Financial Services, a Folsom, California-based financial planning and investment advisory firm with roughly $270 million in AUM. The deal expands Allworth’s footprint in Northern California and increases the firm’s total AUM to over $10 billion as part of its ongoing roll-up strategy while the company remains PE-backed by Parthenon Capital.

Miami International Holdings, Inc. (MIH) completed its acquisition of the Minneapolis Grain Exchange (MGEX) for a combination of cash and MIH common stock. MGEX will operate as a wholly owned subsidiary of MIH, expanding MIH's product capabilities by adding a dedicated futures platform and enabling the listing of new exclusive options and futures products.

DMS Governance (now Waystone), backed by private equity investor MML Capital Partners, has acquired Azienda Financial Services, an independent corporate and structured finance administration provider based in Luxembourg. The deal strengthens DMS/Waystone's structured finance capabilities and expands its footprint in Luxembourg and the surrounding region as the firm's fifth transaction under MML's investment.

BlackRock, Inc. entered into a definitive agreement to acquire Aperio Group LLC from Golden Gate Capital and Aperio employees for $1.05 billion in cash. The deal adds Aperio's $36 billion in AUM and tax-optimized, personalized index SMA capabilities to BlackRock's U.S. Wealth Advisory business, with Aperio operating as a separately branded team.

LDC, the UK mid-market private equity investor, has made an undisclosed investment in Ross Trustees to support a management buyout led by CEO Nigel Moore, COO Susan Andrews and CBDO Andrew Bradshaw. The funding will provide a financial platform for growth, helping Ross Trustees expand its service offering and workforce; Ross Trustees employs around 45 people and supports more than 100 pension schemes.

AmeriLife Group, LLC has acquired American Benefits Exchange, a Texas-based insurance marketing organization specializing in benefits for federal, postal, state employees and members of the U.S. Armed Forces. The deal expands AmeriLife’s distribution capabilities into specialized government and military markets, and American Benefits Exchange President Brian Pearson will continue to lead the business.

EP Wealth Advisors, a Torrance-based independent registered investment adviser, has acquired Harris Financial Advisors, Inc., a Torrance wealth management firm led by founder Mary Harris. The deal expands EP Wealth's presence in the South Bay (Torrance and Palos Verdes Peninsula), adds roughly $490 million in AUM and about 390 clients, and brings the Harris Financial team into EP Wealth; financial terms were not disclosed.

CI Financial Corp. agreed to acquire 100% of The Roosevelt Investment Group, a New York–based registered investment advisor with approximately US$2.7 billion in assets under management. The acquisition expands CI's U.S. wealth management platform and establishes a presence in the New York market, bringing CI's projected U.S. wealth assets to roughly US$16.5 billion.

AEGIS Hedging Solutions has acquired Nexidus Commodities to expand its hedging capabilities into base and precious metals. The transaction was completed in partnership with private equity investor Trilantic North America, which recently invested in AEGIS to support its growth; AEGIS' founders remain significant equity holders and Baird Capital retains a material stake.

Cinven and GIC have agreed to acquire Miller, a London-headquartered specialist insurance and (re)insurance broker, from Miller’s partners and corporate member Willis Towers Watson. Miller employs more than 640 people across major insurance hubs, places about £2 billion of premiums annually, and the buyers plan to accelerate growth through independent ownership, organic expansion and selective bolt-on M&A.

Gen II Fund Services, a leading independent alternative asset fund administrator headquartered in New York and Luxembourg, has secured a new strategic investment led by General Atlantic and Hg, with IHS Markit making a minority investment. The founders and management will retain a significant stake while the capital and partners will be used to expand Gen II's technology-enabled fund administration capabilities and global reach.

Trustar Bank has acquired Fairfax-based Granite Mortgage, LLC, making Granite a wholly owned subsidiary to enable the bank to launch a full-service residential mortgage business line. The deal expands Trustar's product offerings — including portfolio, jumbo and construction-to-perm loans — and aims to broaden lending across new states and the DC/MD/VA market.

CI Financial Corp. will acquire a majority interest in Houston-based registered investment advisor Stavis & Cohen Financial LLC, which manages approximately US$570 million in assets. The deal expands CI's U.S. wealth platform (raising U.S. assets to about US$13 billion and North American wealth assets to ~US$59 billion) and is expected to close prior to year-end; terms were not disclosed.

Solar Capital Ltd. acquired an 87.5% majority stake in Kingsbridge Holdings LLC on November 3, 2020, investing approximately $216 million (about $136 million of equity and $80 million of debt). The stake was purchased from TZP Capital Partners II, LP and affiliates with Kingsbridge management rolling a portion of their equity; the acquisition expands Solar Capital's specialty finance platform by adding lease origination and asset finance capabilities through Kingsbridge's equipment leasing business based in Lake Forest, Illinois.

Foreside Financial Group acquired the regulatory compliance business of Integrated Compliance Solutions Group (ICSGroup), a Hartford-based compliance services firm focused on asset managers and emerging managers. The add-on expands Foreside's technology-enabled governance, risk and compliance capabilities for hedge funds, private equity and other alternative investment managers; financial terms were not disclosed.

NerdWallet has acquired Fundera, a New York–based online marketplace that connects small and medium-sized businesses with lenders and other financial products. Fundera will become a NerdWallet subsidiary and its team will join NerdWallet as the company expands its offerings into the SMB lending and small-business financial guidance market.

INX Limited has signed a term sheet to acquire Openfinance Securities LLC, a FINRA/SIPC-registered U.S. broker-dealer and alternative trading system (ATS) based in Chicago, subject to definitive agreements and regulatory approvals. The deal would transfer Openfinance's broker-dealer and ATS business — including systems, digital asset listings, client relationships and licenses — to INX as it expands its regulated digital-asset trading capabilities.

Allworth Financial has entered into a definitive agreement to acquire Pathways Financial Partners of Tucson, Arizona. The deal adds roughly $158 million of assets under management to Allworth, bringing the firm's total AUM to over $9.5 billion and expands Allworth's presence into Arizona; the transaction is expected to close prior to year-end.

United Federal Credit Union will acquire the assets and assume the liabilities of Edgewater Bank in an all-cash transaction. Edgewater Bancorp and Edgewater Bank will liquidate and distribute remaining cash to stockholders; the deal expands United's branch network and increases its assets to roughly $3.5 billion.

First American Financial Corporation has completed the acquisition of ServiceMac, LLC, a mortgage subservicing firm. The deal makes ServiceMac a wholly‑owned subsidiary of First American to expand its mortgage servicing capabilities and accelerate product innovation across the mortgage life cycle.

Stewart Appraisals Management, a subsidiary of Stewart Information Services Corporation, acquired Pro Teck Valuation Intelligence to expand its appraisal and valuation capabilities and add Pro Teck's Valuation Intelligence cloud-based platform and analytics. The deal strengthens Stewart's scale across mortgage origination, servicing and capital markets by combining Pro Teck's technology, data and valuation services with Stewart's national valuation operations.

Investment funds affiliated with Lightyear Capital and the Ontario Teachers' Pension Plan agreed to acquire wealth management firm Allworth Financial from Parthenon Capital. Allworth's senior management will remain significant shareholders; the investment will support continued national expansion through add-on acquisitions and multi-channel marketing. Financial terms were not disclosed and the deal was expected to close in Q4 2020.

Lee Equity Partners has agreed to become the majority owner of Simplicity Group Holdings, a Summit, New Jersey-based financial products distribution business. The transaction transfers majority ownership from Aquiline Capital Partners to Lee Equity and is expected to close by the end of 2020 subject to regulatory approvals; financial terms were not disclosed.

Simply Group (Simply Green Home Services Inc.) acquired SNAP Financial Group Inc. in a transaction with an enterprise value of $511 million, which included $412 million of consumer loan assets and a cash equity investment of $73.5 million. The deal adds SNAP's SNAP Home Finance division and dealer network to Simply Group, growing its assets under management to over $1.25 billion and expanding its consumer financing capabilities for home improvement and HVAC markets in Canada.

Housatonic Partners, a growth-oriented private equity firm, acquired majority control of MaxiTransfers, a US-based money transfer business serving the US–Latin America remittance corridor. The investment positions MaxiTransfers to expand its agent network and product offering under new CEO Gabe Manjarrez while Investar (the prior holder) exits; financial terms were not disclosed.

Te Creemos Holding, a PC Capital portfolio company, acquired the loan portfolio and certain operating assets of Financiera Finsol (a subsidiary of Financiera Independencia). The deal strengthens Te Creemos's position as Mexico's largest private microfinance lender—bringing its gross loan portfolio to about MXN 5,450 million and supporting continued market consolidation and growth.

Morgan Stanley has entered into a definitive agreement to acquire Eaton Vance for an equity value of approximately $7 billion, creating a larger Morgan Stanley Investment Management platform with expanded product and distribution capabilities. The deal combines Eaton Vance’s asset management and retail distribution strengths with Morgan Stanley’s global scale to increase fee-based revenues, deliver cost synergies, and broaden client offerings.

Wealth Enhancement Group, a Minneapolis-based independent wealth management firm overseeing approximately $20.3 billion in client assets, announced the acquisition of 10-15 Associates, an independent RIA headquartered in Goshen, New York with about $923 million in client assets. The deal expands Wealth Enhancement Group’s footprint in the New York / Tri-State region and brings additional advisory talent and offices to its national wealth management platform.

Allegis Advisor Group has acquired Beacon Financial, Inc., a national insurance marketing organization that specializes in annuities, life insurance and Medicare, and will merge Beacon into Allegis. The deal expands Allegis's capabilities and talent pool to provide affiliated advisors broader insurance solutions, Medicare planning, lead generation and advanced market support.

The Charles Schwab Corporation completed its acquisition of TD Ameritrade Holding Corporation, creating a combined firm with approximately $6 trillion in client assets and 28 million brokerage accounts. The deal broadens Schwab’s scale and product offering (including thinkorswim and institutional custody solutions) and begins an 18–36 month integration to unify platforms and operations.

LERETA, a national provider of real estate tax and flood services, has acquired Accumatch, a Dallas-based property tax intelligence company founded in 2002. The deal expands LERETA's tax-service capabilities and technology offerings—Accumatch's team and founder will join LERETA to accelerate product modernization and service growth for mortgage servicers and lenders.

Mortgage Contracting Services (MCS), a Lewisville, Texas–based provider of property preservation and field services to mortgage servicers and other financial institutions, completed a sponsor-led recapitalization. The new ownership group is led by Littlejohn & Co. and includes Lynstone SSF Holdings Sàrl, funds advised by Neuberger Berman Alternatives Advisers, and Crescent Capital Group.

US private equity firm Warburg Pincus, via affiliate Orange Clove Investments BV, agreed to invest about $95 million (INR 700 crore) in Home First Finance Company India Ltd on October 2, 2020. The transaction comprises a mix of primary capital and secondary share purchases from existing shareholders to support Home First's next phase of expansion in the affordable housing finance segment.

Mubadala Investment Company committed $2 billion to a new long-term investment strategy led by Silver Lake and acquired a minority equity interest in Silver Lake through a secondary transaction with Dyal Capital Partners. The multi-decade strategy will invest across structures, geographies and industries; terms of the equity purchase were not disclosed and Dyal will retain roughly half of its original investment.

CI Financial Corp. agreed to acquire full ownership of Bowling Portfolio Management LLC, a woman‑owned registered investment advisor in Cincinnati with approximately US$450 million in assets under management. The deal expands CI's U.S. wealth management footprint in the Midwest; Darren Kavesh will be named President and CEO and Kathy Wayner will remain in a consulting role. Terms were not disclosed and the transaction is subject to regulatory approval.

The Orogen Group has signed a definitive agreement to acquire a majority stake in Westcor Land Title Insurance Company, the nation’s largest privately-held title insurance underwriter. Terms were not disclosed; Orogen said it will partner with Westcor’s leadership to expand the business, leverage technology to improve efficiency, and support independent title agents across the United States.

The Mather Group, a family- and employee-owned wealth management firm headquartered in Chicago, has acquired Houston-based fiduciary-only firm PartnersInWealth, which manages approximately $350 million in AUM. The deal strengthens TMG's presence in the Houston market and increases its overall AUM while providing PartnersInWealth's founder and team access to TMG's technology platform and boutique culture.

Creative Planning Inc. has acquired Atlanta-based Registered Investment Adviser TrueWealth, which manages approximately $1.6 billion in assets. The deal expands Creative Planning's presence in Atlanta and adds TrueWealth's team of advisors and client relationships to Creative's national wealth management platform.