July 12, 2019
Louis Diamond Quoted
By Jason Bisnoff and James Connington
Mercer Global Advisors, one of the most active acquirers in the registered investment adviser channel, is reportedly on the chopping block itself with private equity owner Genstar Capital taking bids.
The firm has more than $16bn in assets under management, a figure that is set to grow by around $1bn by Q4 due to five deals currently in the pipeline, Fund Intelligence can reveal.
However, valuations are in the eye of the beholder, argued Louis Diamond, executive vice president at Diamond Consultants, who said they are never high enough for sellers and getting too high if you ask buyers.
He said that deep-pocketed firms and competition have pushed prices up, but a more notable trend in dealmaking is a structure shift with far more upfront cash on offer for sellers. This is something that is often more important to the seller than the valuation.