Private equity firm GTCR has agreed to acquire AssetMark Financial, a wealth management technology platform for financial advisors, in a deal with a total equity valuation of about $2.7bn.

According to the terms of the definitive agreement, shareholders of AssetMark Financial will receive $35.25 per share in cash.

Based in California, US, AssetMark Financial operates a wealth management platform that supports independent financial advisors and their clients.

The firm through its affiliates Voyant and Adhesion Wealth offers flexible, purpose-built solutions to advisory firms of all sizes and business models at every stage of their journey.

It also offers a comprehensive portfolio of technology solutions and service offerings that allow independent financial advisors to develop and manage tailored client investment portfolios, report and analyse performance and custody assets.

AssetMark Financial, with about $117bn of assets on the platform, is said to serve more than 9,300 financial advisors and over 257,000 investor households.

AssetMark Financial CEO Michael Kim said: “This transaction will deliver substantial value for our shareholders, supports key elements of our strategy, and creates new and exciting opportunities for our employees.

“In partnership with GTCR, we will continue to focus on expanding offerings for our clients with new product capabilities while maintaining our reputation for excellent client service.”

Following the closing of the transaction, AssetMark Financial will become a private company and its common stock will no longer be listed on any public market.

GTCR co-CEO and managing director Collin Roche said: “AssetMark is a leader in the wealth technology industry, combining a high-quality service orientation with innovative technology and products that financial advisors rely on to support their clients.

“We would like to congratulate Huatai Securities, AssetMark’s majority shareholder, on the substantial increase in the scale and profile of the business during Huatai Securities’ majority ownership which began in 2016.”

Subject to customary conditions and required regulatory approvals, the deal is anticipated to be completed in Q4 2024.

Morgan Stanley & Co. was the exclusive financial adviser to AssetMark Financial while Davis Polk & Wardwell provided legal counsel.

UBS Investment Bank and Barclays were co-lead financial advisers to GTCR. BofA Securities and Jefferies also served as financial advisers.