Aquiline, Genstar exit AssetMark to China’s Huatai for $780m

According to a filing, the Chinese brokerage firm will purchase the entire issued capital of AssetMark in cash, with the first of two tranches to include a $23.4 million deposit. AssetMark will retain its leadership team, brand and sales structure.

"This transaction is a strategically important action for Huatai as it is our first investment in the US," Huatai president and executive director Zhou Yi said in a statement. "We are excited to work with the management team and invest in AssetMark's growth. We also believe that AssetMark's asset management capabilities and technology leadership give us the opportunity to provide new and innovative wealth management solutions to our clients."

Aquiline and Genstar purchased AssetMark in 2013 from Genworth Financial for $412.5 million. The company - which provides investment and consulting services to financial advisors - posted a net revenue increase of 11.9% during the 2015 financial year to $157.8 million. After-tax net profit improved 49.9% during the year to $9.8 million.

Huatai identified the strategic acquisition as part of an expansion plan aimed at growing its revenue, which declined 37.9% from December to the end of March at RMB1.2 billion ($189.5 million). The company launched its Hong Kong IPO last year with support from a fund controlled by Noah Holdings and Hillhouse Capital Management.

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• Topics
• Greater China
• Financials
• Support services
• Trade sale
• Hong Kong (China)