M&A
KKR
The private equity firm has agreed to acquire all of the outstanding shares in Global Atlantic Financial Group, a retirement and life insurance company.
After the deal completes, Global Atlantic will continue to operate as a separate business with its existing brands and management team.
Global Atlantic serves more than two million policyholders through its retirement and life insurance products.
Under the terms of the agreement, KKR will pay Global Atlantic shareholders an amount equal to one times Global Atlantic’s book value as of the date of closing, subject to an equity roll-over for certain existing shareholders.
As of March 31, 2020, Global Atlantic’s book value was approximately $4.4bn (£3.5bn, €3.9bn).
KKR expects to fund the acquisition from a combination of cash, proceeds from potential minority co-investors and the issuance of new debt and/or equity.
The transaction, which is expected to close in early 2021, is subject to required regulatory approvals.
Global Atlantic has offices in the US, Ireland and Bermuda.
Brookstone Capital Management
The company has merged with fellow registered investment adviser (RIA) firm FormulaFolios to create a $6.5bn business.
The combined company will retain the Brookstone name.
The FormulaFolios brand will be retained for continued oversight of the asset management division.
Brookstone will maintain both companies’ headquarters in Chicago and Grand Rapids, Michigan.
The more than 100 employees will work between these two offices and a satellite office in California.
The five key executives between both firms will be retained, serving in the following capacities:
- Dean Zayed as chief executive;
- Darryl Ronconi as president and chief operating officer;
- Jason Wenk as executive director;
- Jason Crump as vice president of relationship management; and
- Joel VanWoerkom as vice president of operations.
Mercer Global Advisors
The RIA firm has acquired MJ Smith and Associates, a wealth management business located in Denver, Colorado.
MJ Smith serves approximately 490 households with assets under management of approximately $910m.
Mark J Smith founded the firm in 1983 and he will be joining Mercer Advisors along with his 11 staff members.
The financial terms of the deal were not disclosed.
Kudu Investment Management
The wealth solution provider has made a strategic investment in RIA firm Sequoia Financial Group.
The financial terms of the deal were not disclosed.
Sequoia provides financial planning, asset management, family wealth and retirement planning services and continues to be led by Tom Haught, founder, president and chief executive.
People moves
RBC Wealth Management
The wealth firm has named Lauri Droster as St Paul complex director, effective 1 August.
In the position, Droster will oversee eight branches, 88 advisers and 75 support staff.
Droster previously served as branch director of RBC Wealth Management’s Madison, Wisconsin branch.
Elsewhere, RBC WM also hired James Koestner as senior vice president and financial adviser to its Dallas executive branch.
He joins from Wells Fargo.
Sanctuary Wealth
The US wealth firm has hired its first Kansas partner firm, Bowersock Capital Partners, based in Lawrence.
Led by Emily Bowersock Hill and Kaylin Dillon, the entire six-woman team was previously with Morgan Stanley, where they were known as The Hill Group.
Other key members of the Bowersock team are director of operations Amy Clark, client operations specialist Kristine Flynn, research analyst Catherine Prestoy and senior registered operations specialist Kathy Olds.
MAI Capital Management
The independent RIA firm has named Olha Paluch as managing director and senior wealth manager.
Most recently, she worked as a senior vice president and relationship strategist at PNC Wealth Management.
Raymond James
The wealth firm has hired financial adviser Sid Grant to manage its office in Abilene, Texas.
Grant joins from Wells Fargo Advisors, where he previously managed more than $230m in client assets.
