San Francisco private equity firm Genstar Capital is buying a majority stake in private equity-backed wealth manager Mercer Advisors.
Mercer, headquartered in Santa Barbara, California, provides financial planning, investment, tax and wealth management services, as well as retirement and estate planning services to affluent clients. The firm has about $6 billion in assets under management. Terms of the deal weren't disclosed.
The group has been backed by lower middle-market private equity firm Lovell Minnick Partners since May 2008. Radnor, Pennsylvania-based Lovell focuses on investing in financial and business services companies. The firm's other investments include 361 Capital and Commercial Credit Group.
Genstar invests in financial services, software, health care and industrial technology companies. The firm's other recent transactions include portfolio company MW Industries' acquisition of Helical Products in February, and the acquisition of data company Asset International last June.
Moelis & Co. acted as Mercer's financial adviser for the transaction.
There have been several deals for wealth management companies recently. Earlier in March, the Colony Group bought CapGroup Advisors, a consulting firm with $1.2 billion in assets under management. In September, Lucia Capital Group bought part of West Coast Asset Management.