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1、Financial Services GroupRetirement Industry OverviewINDUSTRY UPDATE Winter 2023Market Overview The retirement market is massive,exceeding$32 trillion in assets.Approximately$9 trillion invested in defined contribution(DC)plans,including more than$6 trillion in 401(k)plans.Macroeconomic and geopoliti
2、cal market pressures continue to displace the market and renew individuals desire for stability as they focus on retirement savings.The Setting Every Community Up for Retirement Enhancement(SECURE)2.0 Act recently passed,bringing a slate of changes that will strengthen the retirement system,includin
3、g automatic enrollment in 401(k)plans,increased catch-up contributions,and emergency savings accounts.Robust Mergers and Acquisitions Activity M&A activity within the retirement space declined from peak levels in 2021.Despite the slowdown,activity remains strong with total deal volume 50%higher than
4、 2020.Retirement and wealth continue to converge;emerging multifunctional platforms(CAPTRUST,Creative Planning,Hub,etc.)are showing they can fully service participants while offering equally capable wealth management and financial planning.Retirement Trends Several notable trends have emerged in the
5、 retirement market:Decreased Savings:The current economic environment has led to decreased savings rates,which can have major consequences on retirement outcomes.Holistic Planning:Planning has evolved to include both pre-and post-retirement offerings,as the workforce has a growing number of both you
6、ng and older workers.Protection:The desire for downside protection and collaboration between sponsor and advisor has trended as participants seek expert advice to navigate turbulent markets and economic uncertainty.Retirement Market SummaryWinter 2023 Industry Updates and DriversEric WeberManaging D
7、irectorNew YorkEWeberHL.com646.645.1026 Our dedicated team has an extensive level of experience in the retirement and asset management sectors,specializing in M&A for wealth managers,asset managers,and manager contracts.We have transacted or transferred more than$189 billion in AUM since 2015.Aaron
8、SolomonSenior Vice PresidentLos AngelesASolomonHL.com310.789.5752 Alexandra LebenthalSenior AdvisorNew YorkALebenthalHL.com646.259.7522 Chris PedoneManaging DirectorNew YorkCPedoneHL.com212.830.6166 Select Market Drivers Houlihan Lokey Retirement TeamSources:SNL Financial,M,company news releases,ind
9、ustry news reports.23U.S.Retirement MarketKey Trends Prevailing in the SpaceMarket turbulence and economic uncertainty have pushed sponsors,advisors,and participants to rethink retirement from simplysaving to an ongoing holistic and durable approach,protecting against downside and providing solution
10、s beyond retirement.Select Market TrendsSources:PLANSPONSOR,T.Rowe Price,industry news reports and research.Approximately 54%of Americans reported reducing or discontinuing retirement savings because of spiking inflation on daily household expenses.This decrease suggests lower industry inflows expec
11、ted in 2023 than in previous years,serving as the impetus for plans sponsors,employers,and policymakers to prioritize helping participants gain access to retirement plans.Under-saving early on can have major consequences on a participants retirement outcome,causing many employers to adopt auto enrol
12、lment,which boosts participation from 39%to 85%.Keeping participants on a path to reach desired outcomes requires holistic help that goes beyond merely saving and investing for retirement and delves into post-retirement and ongoing wealth management,as well.With younger employees entering the workfo
13、rce and older employees working longer,plan sponsors and financial professionals are offering innovative products and services.For older employees,hybrid solutions seamlessly transitioning target date funds(TDFs)to personalized allocations have gained traction,while investment strategies in ESG and
14、cryptocurrencies have captured younger cohorts attention.Plan sponsors are working to keep employees in plan post-retirement as the demand for income-producing products and services grows,a material trend reversal from just a few years ago.SECUREs passage has sparked a frenetic wave of product devel
15、opment in the DC insured solution space as recordkeepers,middleware providers,and insurance companies make advancements toward benefit portability.Many providers will launch their second or third post-SECURE income product integration in 2023.Tools comparing annuity and other lifetime income solutio
16、ns have been launched;nonconsideration of income solutions could be seen as a fiduciary breach.The current economic dynamics are unlike any many investors have experienced,including the largest surge in consumer inflation since the 1980s,driving demand for diversification and downside protection mor
17、e than ever.Plan sponsors continue to collaborate with financial professionals,as active management has helped achieve the diversification needed to navigate uncertain investment landscapes pre-and post-retirement.Its expected that plan sponsors will construct retirement ecosystems encompassing an a
18、rray of investment solutions,tools,services,and professional advice.Decreased Savings RatesHolistic Retirement PlanningCollaboration Between Sponsors and ProfessionalsMore New Products anda Focus on Lifetime IncomePage1.Houlihan Lokey Transactions42.Market Trends113.Self-Directed IRA Trends164.Marke
19、t Map,M&A Activity,and Company Profiles225.Valuation Trends436.Appendix49TransactionDeal DateJanuary2023December 2022October2022March2022March2022February2022June 2020Target DescriptionInvestment advisor for high-net-worth families,trusts,foundations,and endowments.Privately owned investment firm,gl
20、obal multifamily office,and merchant banking boutique.Leading independent wealth management business employing more than 120 employees and managing more than$2.7 billion in AUM.One of the largest U.K.independent financial advisory businesses,serving more than 20,000 clients through more than 500 sta
21、ff across 17 U.K.locations.Fee-only fiduciary firm serving primarily high-net-worth individuals,with approximately$8.0 billion in AUM,ranked in the Top 100 RIA Firms in the country for the past four years.Leading managed account DC technology platform utilizing its proprietary technology to service
22、more than$2.3 billion in AUM and more than 4,000 plans.Provider of mortgage technology solutions,supporting home equity conversion mortgage and private reverse mortgage origination products.RetireUp builds efficient software and simulations that enable advisors to assess a clients needs for specific
23、 lifetime income product,including annuities and life insurance.Houlihan Lokey RoleDeal Accounting,Financial Reporting,and Valuation Advisory ServicesFinancial AdvisorSellside AdvisorFinancial AdvisorSellside AdvisorSellside AdvisorSellside Advisor5Select Retirement and Wealth TransactionsHoulihan L
24、okey Transaction Spotlighthas completed a business combination withto formCapital Markets Accounting&Reporting Advisorhas been acquired bya portfolio company ofSellside Advisora portfolio company ofhas been acquired bySellside Advisora portfolio company ofhas been acquired bySellside Advisorhas made
25、 a strategic partnership in and recapitalization of$8.0 billion AUM Wealth ManagerFinancial Advisorhas received significant investment fromFinancial Advisora portfolio company of funds managed by andhas been acquired bySellside Advisor On August 3,2022,Saltus Group(Saltus)secured a significant inves
26、tment from Preservation Capital Partners(PCP)to support its goal of being the leading vertically integrated high-net-worth(HNW)wealth management firm in the U.K.It is expected that post completion,PCP will hold a majority stake alongside management and the existing long-term shareholder base of HNW
27、individuals.The investment will significantly accelerate Saltus current growth trajectory through greater access to capital.This facilitates further investment in technology development to improve the experience of its clients and advisors,and it broadens the reach of the Saltus Partnerships Program
28、me(SPP).The transaction closed on December 2,2022.Transaction OverviewSaltus Group has secured a significant investment from Preservation Capital Partners.Preservation Capital PartnersSaltus GroupHoulihan Lokey served as financial advisor to Saltus Group and assisted in negotiating the transaction.S
29、altus is an independent wealth management business helping its clients achieve their goals in life through expert financial planning as well as sharp,focused investment management.Founded in 2004,Saltus has displayed impressive growth,launching Saltus Financial Planning in 2015,and now employs more
30、than 120 people and has more than$2.7 billion in assets under management(AUM).The expectation is to grow AUM to more than$4 billion by the end of the year.PCP is an investment firm specializing in investing in high-growth financial technology and services companies.It manages approximately$1 billion
31、 in AUM and has more than 75 years of direct investing experience with a strong record of supporting businesses in their growth.Sources:Public filings,transaction press release.6Saltus Group Secures Investment From PCPHoulihan Lokey Case Study7Transaction OverviewSources:Public filings,transaction p
32、ress release.The acquisition expands CMS overall footprint and availability of its platforms and services.It also expands CMS digital mortgage ecosystem and capabilities.This is CMS second acquisition in the mortgage space,following the acquisition of LOS and LSS provider Mortgage Builder in 2019.Th
33、e sale consummated a dedicated growth period for ReverseVision,and the transaction marks the next chapter in ReverseVisions evolution.ReverseVision Overview Founded in 2007,ReverseVision serves the industrys top reverse mortgage lenders and 100%of all reverse investors,including banks and credit uni
34、ons,mortgage brokers,and independent mortgage banks.ReverseVisions comprehensive reverse mortgage platform and HECM products leverage integrations and APIs that open the total addressable market,allowing users to originate reverse mortgages alongside their traditional lending portfolios.CMS,a divisi
35、on of Toronto-based Constellation Software,acquired ReverseVision.The acquisition includes the components of ReverseVisions full product suite,including ReverseVision Exchange(RVX),core platform;RVDOC Composer(RVDOC),compliant reverse mortgage documents;and ReverseVision Sales Accelerator(RVSA),loan
36、 modeling and comparison tools.Headquartered in Michigan,CMS is a leading provider of mortgage lending technology.CMS acquires and invests in financial software companies that provide mission-critical solutions for the mortgage industry.CMS is part of the Romulus Group,a portfolio of vertical-market
37、 software companies within the Perseus operating group of Constellation Software.Houlihan Lokey served as the exclusive financial advisor to ReverseVision,Inc.,and TVC Capital and assisted in marketing,structuring,and negotiating the transaction.Transaction Rationale Constellation OverviewConstellat
38、ion Mortgage Solutions to Acquire ReverseVisionHoulihan Lokey Case StudyCMS has a proven track record for supporting its businesses and empowering them to advance the industries they serve.Our team looks forward to building on our shared principles to help borrowers achieve their financial goals.Joe
39、 Langer,Former President and CEO of ReverseVision“”On February 9,2022,Constellation Mortgage Solutions,Inc.(CMS)announced the closing of its acquisition of ReverseVision,Inc.,a portfolio company of TVC Capital(TVC).8Transaction OverviewSources:Public filings,transaction press release.Creates continu
40、ed momentum for Smarts U.S.growth initiative,having recently launched U.S.operations.Integrates recordkeeping,managed accounts,and other administrative services focused on pooled plan structures and retirement income solutions.Brings Smart Retire product to Stadions existing StoryLine accumulation o
41、ffering to give participants a decumulation solution,supporting the income needs of the participant post retirement.Smart will add more than$2.3 billion in assets under management and gain access to Stadions 4,000 plans.Smart Overview Founded in 2014,Smart is a global technology business that delive
42、rs people-focused retirement solutions.As of July 31,2021,Smart had more than$2 billion in assets on its platform,serving more than 70,000 retirement plans.It offers a broad range of retirement products ranging from self-service retirement income solutions to customized platform options for employer
43、s,advisors,and participants.Smart signed a definitive agreement with TA Associates to acquire 100%of the equity of Stadion.Stadions employees will be joining Smarts U.S.retirement operations.Stadion is a leading managed account DC technology platform utilizing its proprietary technology.It integrate
44、s with recordkeepers to offer low-cost personalized retirement solutions on a mass scale within the U.S.retirement plan market.It offers both its signature StoryLine managed account solution and tech-only services.Stadion was founded in 1993 and headquartered in Athens,Georgia.Houlihan Lokey served
45、as the exclusive financial advisor to Stadion and assisted in marketing,structuring,and negotiating the transaction with Smart,successfully driving competitive tension and identifying the best partner to Stadions retirement tech.Transaction Rationale Stadion OverviewSmart USA to Acquire Stadion Mone
46、y ManagementHoulihan Lokey Case StudyThere is an incredible opportunity to deliver scalable and personalized retirement solutions to even more Americans.The combined team of Smart and Stadion will be extremely well positioned to serve the evolving needs of recordkeepers,asset managers,advisors,plans
47、 sponsors,and ultimately their participants.Jud Doherty,CEO of Stadion“”On January 6,2022,TA Associates,LP,announced the signing of a definitive agreement to sell Stadion Money Management,LLC(Stadion),a technology-enabled managed account provider,to Smart USA Co.(Smart).RetireUp OverviewTegra118 Ove
48、rview9Sources:Public filings,transaction press release.Leading provider of software solutions to the wealth and asset management industry with a vast network of broker-dealers,asset managers,custodians,and trading interfaces.Tegra118s technology platform provides portfolio management,trading,account
49、ing,rebalancing,and reporting for managed accounts.Formerly Fiserv Investment Services,Motive Partners,a specialist private equity firm with offices in New York City and London,acquired a 60%stake in February 2020.Motive Partners is focused on technology-enabled businesses and financial services com
50、panies.This was a step forward in expanding Tegra118s insurance wealth advisory practice,offering a new financial tool to its vast network of clients.Joining an established leader in the wealth management industry will allow RetireUp to expand its footprint and offer new products to its growing cust
51、omer base.Tegra118 is committed to delivering powerful solutions that set a new standard.Founded in 2013 by a team of financial advisors,RetireUp boasts nimble and efficient software and simulations that make it easy for advisors to assess a clients needs for specific lifetime income products(such a
52、s annuities and life insurance).Unique solutions also transform complex financial concepts into easy-to-understand,“big-picture”visuals so advisors can help investors become active participants in their own financial futures.Headquartered in Illinois,the entire RetireUp team joined Tegra118.Houlihan
53、 Lokey served as the exclusive financial advisor to RetireUp and assisted in marketing,structuring,and negotiating thetransaction with Motive Partners,successfully navigating a challenging market environment amid COVID-19.Transaction Overview The acquisition of RetireUp will accelerate and advance T
54、egra118s wealthtechplatform.Combined,the two companies will bring unique strengths to the industry through proven,mission-critical technology that helps advisors enrich their client relationships through innovative,impactful solutions.RetireUps solutions also transform complex financial concepts int
55、o easy-to-understand,“big-picture”visuals.The combined firm will help advisors enrich their client relationships with powerful retirement income planning through a seamless,modern experience.Transaction Rationale Tegra118 to Acquire RetireUpHoulihan Lokey Case StudySince 2012,RetireUp has supported
56、insurance broker-dealers with a focus on annuity and financial planning advice.Joining forces with Tegra118,an established leader in the wealth management industryOur combined offerings give Tegra118 an edge in addressing the growing market for lifetime income solutions.Michael Roth,President of Ret
57、ireUp“”On June 9,2020,Tegra118,a portfolio company of Motive Partners GP,LLC,announced the closing of its acquisition of RetireUp,LLC,an insurance technology business focused on the retirement planning industry.Retirement and Wealth Management TransactionsExtensive Global Retirement and Wealth Exper
58、ienceSelect Wealth Management Related EngagementsTombstones included herein represent transactions closed from 2013 forward.*Selected transactions were executed by Houlihan Lokey professionals while at other firms acquired by Houlihan Lokey or by professionals from a Houlihan Lokey joint venture com
59、pany.10has been acquired bySellside AdvisorPage1.Houlihan Lokey Transactions42.Market Trends113.Self-Directed IRA Trends164.Market Map,M&A Activity,and Company Profiles225.Valuation Trends436.Appendix49367,093301,46867,79066,92523,88650012U.S.Retirement MarketImpact From SECURE Act 2.0The DC market
60、has recently undergone sweeping regulatory changes that will increase savings,most notably requiring employers toautomatically enroll employees in retirement plans at a default 3.0%contribution rate.Recent Market Legislation The SECURE Act 2.0 is now law,making it easier to accumulate savings.AUTO E
61、NROLLMENTEmployees will be automatically enrolled in retirement plans at a minimum default contribution rate of 3.0%,increasing 1.0%yearly to a maximum contribution rate of at least 10.0%,but not more than 15.0%.EMPLOYER CONTRIBUTIONS FOR STUDENT LOAN PAYMENTSThis allows employers to make matching c
62、ontributions to an employees retirement plan based on qualified student loan payments.AGE INCREASE FOR REQUIRED MINIMUM DISTRIBUTIONS The age to make required minimum withdrawals from retirement savings is now 73,previously 72,and will move up to 75 in 2033.EMERGENCY SAVINGS Penalty-free withdrawals
63、 of up to$1,000 a year from 401(k)savings are now allowed.The withdrawals are tax free if paid back within three years.CATCH-UP CONTRIBUTIONS If 50 or older,an additional$6,500 may be contributed to 401(k)savings on top of the$20,500.For those aged 6063,$10,000,instead of the$6,500,may be contribute
64、d.SAVERS CREDITA matching contribution of 50%or up to$1,000 from the federal government will be given to lower-income earners retirement contributions.PART-TIME WORKERSPart-time workers are now allowed to participate in a workplace retirement plan if they have two years of service and work at least
65、500 hours a year.Participants want advice,and companies want diversified revenue,creating synergetic opportunities.Supplemental offerings can bolster revenue while increasing client satisfaction:Bundled solutions Decumulation planning In-plan participant advice Managed accounts Wellness programsThem
66、es Creating OpportunitiesReframe the Participant ExperienceSources:BofA Global Researchs The Silver Lining,ICI Quarterly Retirement Market Data Third Quarter 2022,PLANSPONSOR 2022,The Wall Street Journal.DC Plans by Number of Participants5.26.16.56.56.97.97.68.910.011.28.95.86.87.37.58.09.49.110.912
67、.313.911.04.44.95.25.25.46.05.96.67.18.17.24.44.85.04.95.05.55.05.65.96.25.1$19.9$22.7$24.0$24.0$25.4$28.8$27.6$32.1$35.3$39.4$32.32000021Q3 2022DCIRAGovernment DBOther RetirementU.S.Retirement MarketOverviewOver the past several decades,the U.S.retirement market has
68、 shifted from defined benefit(DB)to defined contribution(DC)plans and individual retirement accounts(IRAs),underscoring participants increased focus on retirement outcome success.13U.S.Retirement Market Overview U.S.retirement assets steadily grew over the past decade,doubling from 20122021,with IRA
69、s and DC plans accounting for approximately two-thirds of all U.S.retirement assets.Due to recent market and economic conditions,retirement assets have decreased 10%as of Q3 2022 and are on pace for the first annual decrease since the 2008 financial crisis.The volatility has caused participants to r
70、ecalibrate their retirement approach toward more tactical strategies capable of taking advantage of market dislocations and seeking professional advice.Recently passed SECURE 2.0 legislation has brought a number of benefits to participants,including requiring employers to automatically enroll employ
71、ees in retirement plans by the end of 2024.U.S.Total Retirement AssetsIndustry Tailwinds Holistic Planning:Plans are keeping participants longer,broadening the traditional role and goal of just“saving”for retirement but offering an ongoing investment approach pre-and post-retirement.Regulation:The S
72、ECURE 2.0 provision will increase savings,ensure greater plan access,and secure retirement income streams.Demographics:Millennials and Gen Zs workforce percentage continues to increase,shifting investment preferences(e.g.,crypto,ESG,self-directed,and alternatives)and expectations.Preferences:Demand
73、for diversification and advice are growing with technological advances,the desire for customization,and professional advice to navigate the uncertain economic outlook.Fiduciary:A focus on income-generating solutions such as annuities pre-and post-retirement may become fiduciary responsibility.IRAs a
74、nd DB plans increased from 22%of U.S.retirement assets in 1980 to 62%in Q3 2022,highlighting the shift in role and responsibility in allocation of contribution from the employer to the participant.$in trillionsSources:ICI Quarterly Retirement Market Data Third Quarter 2022,JP Morgan 2021 Defined Con
75、tribution Plan Participant Survey.Forty years ago,IRAs and DC plans accounted for 23%of retirement market assets,while DB plans accounted for more than 60%of assets.This shift in responsibility puts the retirement onus on the participant,but participants want some form of advice as they navigate sav
76、ings.81%of participants said it would be helpful if employers provided secure income-generating options in workplace plans.Plan sponsors have responded in kind,offering a more holistic savings approach:Retirement ecosystems that combine products,professional advice,and tools for participants.Ongoing
77、 solutions post-retirement focused on lifetime income and protection against downside risk.14U.S.Retirement MarketParticipant Demographics and Plan Sponsor RoleApproximately two-thirds of all U.S.retirement assets are held in IRAs and DC plans.Historical DC Plan AssetsShifting Responsibility Toward
78、the Participant401(k)Assets by Asset TypeHistorical Share of U.S.Market by Plan Type3%16%23%28%31%35%34%20%22%26%27%27%28%28%64%51%44%37%34%30%32%13%10%8%9%8%7%7%0201020152020Q3 2022IRADCDBAnnuities$202$872$2,958$4,770$6,456$9,965$8,9000201020152020Q3 2022$in billionsCAGR 9.04%
79、33%48%59%64%63%61%67%52%41%36%37%39%$1,061$1,738$3,118$4,377$7,033$6,265020152020Q3 2022Mutual FundsOther Assets$in billionsSources:ICI Quarterly Retirement Market Data Third Quarter 2022,Vanguards How America Saves 2021.$2.8$3.3$2.5$2.6$2.7$2.8$2.9$3.0$3.1$3.2$3.3$3.4$3.520202021U.S.Reti
80、rement MarketDC Is a Large and Growing Market15$6.5$11.2$12.7 201520212025EAssets in the DC Market401(k)Plans and ParticipantsCAGR:6.9%Assets Held in Target Date FundsDC Market Overview17.9%Average Asset Allocations$8.9 trillion in assets held in DC plans in the U.S.as of Q3 2022 The U.S.DC market i
81、s rapidly growing,with$12.7 trillion projected assets by 2025.As of 2022,$6.3 trillion and$3.3 trillion sit within 401(k)plans and TDFs,respectively.Self-directed assets are projected to grow from market appreciation,increased retirement ages,and regulatory changes.Participants are looking to employ
82、ers for retirement advice from accumulation to decumulation;holistic strategies inclusive of features like a qualified default investment alternative(QDIA),auto enrollment,reenrollment,and financial wellness can better fund plans and help close the savings gap.Annuities are gaining popularity as a g
83、uaranteed income strategy within TDFs;DC plan consultants are most likely(68%)to recommend TDFs with a guaranteed income component.$in trillions000s$in trillions401(k)participants in their 60sof DC plan assets are in 401(k)sof participants are younger than 40 of plans had employer contributions Aver
84、age 401(k)Asset Allocation70%1/380%Equity Funds38%TDFs29%Bond Funds10%Company Stock5%Other18%5476221,00080922025EPlansParticipantsSources:BenefitsPRO,Department of Labor,ICI 2022 Fact Book,ICI Quarterly Retirement Market Data Third Quarter 2022,JP Morgan 2021 Defined Contribution Plan Par
85、ticipant Survey,McKinsey&Companys“Long-term value creation in US retirement,”Morningstars“Target-Date Strategy Landscape Report.”Page1.Houlihan Lokey Transactions42.Market Trends113.Self-Directed IRA Trends164.Market Map,M&A Activity,and Company Profiles225.Valuation Trends436.Appendix4917Emerging a
86、s a popular savings vehicle for retirement,SDIRAs are further demonstrating retirement investors desire for account control and investment flexibility.U.S.Retirement MarketSelf-Directed Investment Retirement Accounts(SDIRAs)Overview An SDIRA is a type of IRA that allows for investment in alternative
87、 assets,like real estate,cryptocurrency,etc.All IRAs,including SDIRAs,are trusts by law.Assets must be held with qualified custodians(1)who act on behalf of the IRA owner.SDIRA LLCs are a type of SDIRA that create an LLC wholly owned by the IRA.This structure allows the IRA owner to manage investmen
88、ts,sign contracts,and write checks on behalf of the IRA/LLC,eliminating the custodian middleman.Alternative investments come with unique risks for investors to consider,including fraudulent custodians.The IRS reissued Publication 3125“The IRS does not Approve IRA Investments”to highlight this risk t
89、o investors.Rules and Regulations SDIRAs abide by general IRA contribution and distribution rules.Disqualified Persons:The IRA owner and beneficiaries,family members of the IRA owner,and fiduciaries of the IRA.Prohibited Investments:Collectibles(excluding various coins and bullions),life insurance,a
90、nd S corporations.Prohibited Transactions:Any improper transaction between an IRA and a disqualified person.The rule specifies who someone may transact with,rather than what someone may invest in,to curb self-dealing and improper tax treatment.Prohibited transactions involving the IRA owner will res
91、ult in disqualification,100%distribution,and any related tax penalties.Benefits SDIRAs are like traditional and Roth IRAs in that they are tax-advantaged accounts for retirement.They are more suitable for sophisticated investors,as the investment options have higher,more complex risk profiles and sh
92、ould be scrutinized with a higher degree of due diligence.Investors look to SDIRAs for increased returns and diversification;they want more control over their accounts and more freedom to choose investments.Other Considerations Custodial SDIRA or SDIRA LLC:The LLC accelerates the investment lifecycl
93、e,avoiding investment authorizations through custodians,and is the most effective type of SDIRA for time-sensitive,transaction-heavy investments like cryptocurrency.Financing:Investors can borrow against their SDIRAs if the loan is a non-recourse mortgage loan in the name of the SDIRA,collateralized
94、 by the property purchased.Taxes:SDIRAs receive the same capital gains tax treatment as normal IRAs but can incur unrelated business income tax.Advice:Legal and tax questions are more complex with SDIRAs.Investors should consult advisors,use facilitators,or seek custodians with more expertise in the
95、se areas.Sources:IRA LLC,IRA Resources,NuWire Investor,The Self-Directed IRA Handbook(2018).(1)See page 20 for additional details and examples of qualified SDIRA custodians.IRA Assets by Asset TypeIRA Mutual Fund Holdings by TypeU.S.Retirement MarketIRA Assets Total IRA assets have steadily grown ov
96、er the past decade and now account for more than one-third of all U.S.retirement assets.IRAs continue to be the fastest-growing segment of the retirement market.Allocations within IRAs are shifting from mutual funds into other assets that have a 10-year CAGR of approximately 8.8%,more than doubling
97、from$2.2 trillion to$5.1 trillion.The gap between“traditional”retirement assets and alternatives continues to widen as consumers demand more varied investments for their retirement funds.SDIRAs are well positioned to capitalize on this new consumer demand by providing alternative investment options,
98、such as real estate,private placement,precious metals,and crypto.Overview$1.0$1.4$1.5$1.5$1.5$1.8$1.6$2.1$2.3$2.8$0.4$0.4$0.5$0.5$0.5$0.6$0.5$0.6$0.8$0.9$0.6$0.7$0.8$0.8$0.8$0.9$0.9$1.0$1.1$1.2$0.6$0.6$0.6$0.6$0.6$0.7$0.7$0.8$0.9$1.0$0.2$0.2$0.2$0.2$0.2$0.2$0.3$0.3$0.4$0.4$2.8$3.3$3.5$3.5$3.7$4.3$4.
99、0$4.8$5.5$6.22000021Domestic EquityGlobal EquityHybridBondMoney Market$in trillions$in trillions$2.8$3.3$3.5$3.5$3.7$4.3$4.0$4.8$5.5$6.2$2.2$2.6$2.9$3.1$3.4$4.2$4.1$5.1$5.7$6.5$0.3$0.4$0.4$0.4$0.4$0.4$0.4$0.5$0.5$0.5$0.3$0.4$0.4$0.4$0.4$0.4$0.4$0.5$0.5$0.5$5.8$6.8$7.
100、3$7.5$8.0$9.4$9.1$10.9$12.3$13.92000021Mutual FundsOther AssetsDepositsAnnuities18(1)Source:ICI Quarterly Retirement Market Data Third Quarter 2022.(1)Other assets includes individual stocks,individual bonds,closed-end funds,ETFs,and other assets held through brokera
101、ge or trust accounts.U.S.Retirement MarketAlternative AssetsHeadingSDIRAs will be the vehicle of choice for those who want access to more aggressive retirement fund growth than traditional methods allow.Ongoing Market Expansion From 2015 to 2022,AUM across all alternative asset classes increased at
102、a CAGR of 9.0%.As of the end of 2022,AUM stood at$13.4 trillion and is expected to reach$23.3 trillion in 2026 for a CAGR of 14.8%.Despite setbacks in recent months,the cryptocurrency market cap and fund AUM show strong annual growth rates relative to other retirement assets.Democratizing Access Tra
103、ditional alternatives like buyout and hedge funds are largely limited to wealthy,sophisticated investors due to large investment minimums and regulatory requirements.New models allow platforms to offer alternative asset investments to nonaccredited investors,often with a low or even no minimum inves
104、tment.New Segments Private markets have expanded beyond traditional PE,VC,hedge funds,and real estate to include real assets,cash-flow-based financing,direct lending,and crypto.The broadening market increases affinity with retail investors and opens opportunities for diversification into assets less
105、 correlated with public equities.New Modalities New methods of fractionalization indicate that just about any real asset can become an investment;Lamborghinis,Basquiats,and racehorses are just examples of this phenomenon.Increased Liquidity Increased retail access,novel fund structures,and open mark
106、etplaces provide new opportunities for investors not willing to accept a typical five-year lockup.$7,350$13,400$23,280201520222026FPrivate EquityPrivate DebtHedge FundsReal EstateInfrastructureNatural Resources$2.2$2.4$2.7$3.2$3.4$3.6$3.2$3.3$3.6$4.0$4.5$5.1$5.9$6.7$5.5$6.0$6.7$7.7$8.5$9.5$9.9$18.3
107、2000212027EDry PowderInvested$11.0TIRA Total AUM$330B$440BIRA Funds Invested in Alternative Assets(1)10,000Baby Boomers Retiring Per DayPrivate Capital AUMAlternative Investment AUM19Sources:PitchBook,Preqin.Note:All chart data in billions.(1)Assumes 3%4%of IRA assets are inves
108、ted in alternatives.10.8%SDIRA LandscapeThe rising prevalence of SDIRAs in the retirement market makes firms offering SDIRA services attractive investment targets.20CompanyNotable Facts/Business Description Third-party administrator of SDIRAs focused on real estate investments,with approximately 25
109、employees and$2 billion in AUMThird-party administrator of SDIRAs with approximately$1 billion in AUM;received$40 million in growth funding in January 2022Third-party administrator of self-directed retirement accounts,with approximately 25 employeesFirst full-service platform enabling digital invest
110、ments in IRAs;150,000 users on the platform and$1.5 billion in transactions processedFacilitator of SDIRAs serving 15,000 clients in all 50 states with 1520 employeesThird-party administrator of SDIRAs with nearly 20 years of organizational experience and 1520 employeesSDIRA custodian offering full-
111、service retirement and pension services with a focus on self-directed retirement accountsThird-party administrator of SDIRAs and tax-advantaged plans serving 22,000 clients with approximately$4 billion in AUC(1)SDIRA custodian serving more than 130,000 clients in all 50 states,with approximately$12
112、billion in AUM and$34 billion in AUC(1)SDIRA custodian primarily focused on bond issuances,serving more than 37,000 clients with more than$2.7 billion in AUC(1)Facilitator of SDIRAs that has helped more than 23,000+clients invest$5.3 billion in alternative assetsSources:Industry news reports and res
113、earch.(1)“AUC”stands for assets under custody.SDIRA Landscape(cont.)The rising prevalence of SDIRAs in the retirement market makes firms offering SDIRA services attractive investment targets.21CompanyNotable Facts/Business Description Open architecture technology platform for IRA businesses,custodia
114、ns,and advisors;received$22 million Series C funding in 2022Developer of crypto,gold,and general digital asset IRA trading platform;received$130 million Series A funding in 2022SDIRA custodian serving thousands of client across all 50 states,with approximately 40 employees and more than$1.5 billion
115、in AUC(1)SDIRA custodian with more than 40 years of organizational experience and approximately$8.5 billion in AUC(1)SDIRA custodian and third-party administrator with more than 25 years of organizational experience,serving 17,000 clientsSDIRA custodian with approximately 5.2 million individual clie
116、nt accounts(2.7 million IRAs)and$51 billion in AUC(1)($25 billion in IRAs)SDIRA custodian that offers supplemental retirement and educational services and manages 51,000 accounts and$3 billion in assetsSDIRA custodian and third-party administrator serving professionals and individuals with more than
117、$2 billion in AUC(1)SDIRA custodian focused on real estate,oil and gas,and promissory notes,serving more than 18,000 clientsFacilitator of SDIRAs with an alternative retirement investment platform;raised$8.05 million Series A in 2021Retirement savings solutions provider for small businesses,with 35
118、years of organizational experience and approximately 125 employeesThird-party administrator with less than 10 employees,providing complete and accurate information on SDIRAsSources:Industry news reports and research.(1)“AUC”stands for assets under custody.Page1.Houlihan Lokey Transactions42.Market T
119、rends113.Self-Directed IRA Trends164.Market Map,M&A Activity,and Company Profiles225.Valuation Trends436.Appendix4923Retirement MarketKey Trends in M&ARetirement businesses continue to be M&A and capital-raise targets across varying segments of the financial services industry,as tailwinds continue i
120、ndustry consolidation.Factors Influencing ConsolidationContinued Interest in Retirement AssetsPE Involvement Remains HighTech Solutions:Buy or BuildIn-Plan CustomizationPublic Valuation Driving Private OpportunitiesSources:Industry news reports and research.Innovative companies are disrupting the re
121、tirement market with newfound technology and ways to reach the end participant;these innovators have caught the attention of PE firms and large traditional recordkeepers.Consolidation continued throughout 2022 among large recordkeepers and aggregators.The marketplace remains fragmented,and consolida
122、tion is expected to continue,especially among large players.The uptick in markets over recent years drove multiples for traditional asset managers to levels not seen since 2017.Recent declines in broad market multiples,following a period of significant multiple expansion post-COVID-19 through the th
123、ird quarter of 2021,presents M&A opportunities.Loss-making companies are being acquired for technological assets and experienced teams(MS/Bloom).User-friendly,customized experiences are differentiators in a market where employees need unique financial support.(With continued technological advancemen
124、t,differentiators are becoming the standard.)Linear retirement spending plans do not grant consumers the same degree of choice as contemporary,personalized plans,and providers are increasingly needing to make their platforms more dynamic.Providers operating on legacy platforms are facing a“buy-or-bu
125、ild”decision.Robo-retirement platforms leverage industry-leading technology and massive amounts of data to provide financial advice and manage customers investment portfolios at a fraction of the cost of a traditional advisor.Large players are looking to modernize their technology infrastructure and
126、 deliver savings in cost-to-serve in an increasingly competitive market.They are deciding whether to outsource tech functions to drive benefits that M&A solutions would typically provide.Most active strategic acquirers are backed by prominent private equity firms.Roll-up strategies remain in place a
127、s smaller deals,under$500 million total AUM/A,are driving recent M&A activity.There is still ample dry powder within private equity and private-equity-backed acquirers,being deployed on attractive targets,especially those that fit within core M&A strategies.Market MapRetirement MarketThere is signif
128、icant market opportunity supported by a wealth of strategic players covering various segments of the retirement space.24Traditional RecordkeepersAggregatorsCustomizationRobo-Retirement/WealthTech/SDIRAsNewer Turnkey EntrantsLifetime Income/Annuities Rank ProviderPlans AddedTotal PlansPlans Added%of
129、Total1Paychex,Inc.20,290100,13720.3%2ADP Retirement Services17,67870,03325.2%3Ascensus11,04952,39121.1%4Capital Group,home of American Funds7,14263,03511.3%5John Hancock6,22051,61012.1%6Principal Financial Group4,34445,7549.5%7Transamerica Retirement Solutions LLC 4,04127,23414.8%8Empower3,88667,476
130、5.8%9Fidelity Investments1,99334,3615.8%10T.Rowe Price1,1936,90517.3%Total77,836518,93615.0%Mean7,78451,89414.3%Median5,28252,00113.4%Recordkeepers provide administrative services for more than$10 trillion of DC assets,with the top 10 recordkeepers holding more than$8.5 trillion plan assets,235,000
131、plans,and 85.5 million participants.Fidelity accounts for nearly 40%of all DC record-keeping assets,while the top five providers account for nearly 80%.The top 10 recordkeepers average$850 billion in assets,23,500 plans,and 8.6 million participants.The top 10 recordkeepers have remained largely stat
132、ic in terms of rankings over the past year.Top 10 Recordkeepers by AssetsTop 10 Recordkeepers by Plans Added(1)Recordkeeper HighlightsU.S.Retirement MarketRecordkeeper Industry BenchmarkingThe recordkeeper landscape features a handful of large players,with the top 10 having administrative control ov
133、er more than 80%of assets.$and participants in millions25Source:PLANSPONSOR,data as of Q2 2022.(1)New plans added in 2021.ActualsRank ProviderAssetsPlansParticipants1Fidelity Investments$3,356,07834,36127.92Empower1,392,73267,47316.13TIAA734,56923,5276.64Vanguard672,6191,6964.85Alight Solutions543,3
134、002,0224.56Principal Financial Group514,62845,75410.97Voya Financial510,66751,9056.38Bank of America Coproration283,7018454.89T.Rowe Price277,9196,9052.310Schwab Retirement Plan Services,Inc.250,5381,1341.5Total$8,536,751235,62285.5Mean853,67523,5628.6Median528,96415,2165.6CorporationM&A activity wi
135、thin the retirement space continues to grow,with increased activity from serial acquirers.Retirement Market Quarterly M&A ActivityRetirement Market M&A Activity2327223730624820000022 The Russia-Ukraine conflict,COVID-19 pandemic,and ensuing supp
136、ly chain and inflationary market pressures have not scared away buyers.Interest in quality retirement platforms remains high and 2022 pipelines remain active.Serial acquirers continue to execute on their growth strategies and are increasingly focused on acquiring firms in key geographies,with top-ti
137、er talent,to create regional hubs.There is market buy-in regarding the retirement roll-up and conversion strategy;over the next few years,it will be critical to see if large acquirers can effectively integrate targets,convert assets,and support historic valuation levels.Market DynamicsRobust Retirem
138、ent M&A MarketOngoing Consolidation26Sources:Public filings,SNL Financial,S&P Capital IQ46691614Q12020Q22020Q32020Q42020Q12021Q22021Q32021Q42021Q12022Q22022Q32022Q42022Announced DateCompanyActivityTargetAmountTarget Subvertical/Investor(s)January 2023Minority Inv.$500New Turnkey EntrantJa
139、nuary 2023BuysThe Ascent Group-RIA/Retirement BusinessDecember 2022Buys-Pension Fund AdminNovember 2022Buys-CIT ProviderNovember 2022Buys600Benefits ProviderOctober 2022Buys-Retirement BusinessOctober 2022Buys-Retirement BusinessSeptember 2022Buys-Hybrid Health/WealthAugust 2022Buys-Retirement Busin
140、essAugust 2022Buys-Retirement ConsultingJuly 2022Capital RaiseN/A40New Turnkey EntrantCIBC Innovation BankingJune 2022Buys-HSA(1)ProviderJune 2022Buys-Retirement Plan ConsultingJune 2022Buys-Robo-RetirementJune 2022Buys-Retirement Plan ConsultingApril 2022Buys-Retirement Plan ConsultingValuationRece
141、nt Select Retirement Transaction ActivityPrivate-Equity-BackedHoulihan Lokey Advised Transaction27Sources:Crunchbase,PitchBook,SNL Financial,S&P Capital IQ,public filings.(1)“HSA”stands for health savings account.$in millionsAnnounced DateCompanyActivityTargetAmountTarget Subvertical/Investor(s)Marc
142、h 2022Buys-Retirement Plan ConsultingMarch 2022Buys$7,159CustomizationMarch 2022Buys-AggregatorFebruary 2022Capital RaiseN/A80CustomizationFounders Kitchen/ThirdStream PartnersFebruary 2022Buys-FintechHSA(1)ProviderFebruary 2022Buys-Retirement BusinessFebruary 2022Buys-Mortgage Software Solutions Fe
143、bruary 2022Management TeamBuys-Pension Fund ManagerJanuary 2022Buys-Retirement BusinessJanuary 2022Buys-Retirement BusinessJanuary 2022Buys-Managed Account ProviderDecember 2021Buys-WealthTechNovember 2021Buys-Retirement BusinessOctober 2021Capital RaiseN/A225New Turnkey EntrantDWS GroupAugust 2021B
144、uys1,200Retirement BusinessAugust 2021Capital RaiseN/A200New Turnkey EntrantTPG,SoftBank,ConsortiumValuationRecent Select Retirement Transaction Activity(cont.)$in millionsPrivate-Equity-BackedHoulihan Lokey Advised Transaction28Sources:Crunchbase,PitchBook,SNL Financial,S&P Capital IQ,public filing
145、s.(1)“HSA”stands for health savings account.ValuationRecent Select Retirement Transaction Activity(cont.)$in millionsSources:Crunchbase,PitchBook,SNL Financial,S&P Capital IQ,public filings.29Announced DateCompanyActivityTargetAmountTarget Subvertical/Investor(s)July 2021Capital RaiseN/A$60New Turnk
146、ey EntrantWells Fargo,Fin Venture,ConsortiumJuly 2021Buys3,550Traditional RecordkeeperJuly 2021Buys-Custom IndexingJune 2021Capital RaiseN/A200New Turnkey EntrantGeneral AtlanticJanuary 2021Buys-Retirement Plan ConsultingNovember 2020Buys1,050Custom IndexingSeptember 2020Capital RaiseN/A30Customizat
147、ionFrancisco Partners,Oak HC/FT,IA CapitalJune 2020Minority Inv.-Aggregators25%stakeJune 2020Buys-Retirement BusinessJune 2020Buys1,000Retirement BusinessFebruary 2017Capital RaiseN/A9Robo-Retirement/WealthTechQED,Commerce Ventures,ConsortiumPrivate Equity-BackedHoulihan Lokey Advised TransactionSel
148、ect Company ProfilesTraditional Recordkeepers30CompanyLocationCompany DescriptionPittsburgh,PAFounded:2018 Overview:Technology-enabled financial services holding company that offers retirement plan administration,brokerage,advisory,trust,and custody solutions.Three main subsidiaries:American Trust,M
149、id-Atlantic Capital Group,and NewEdge Capital Group.M&A and Capital-Raise Activity:PensionPro,a provider of TPA workflow automation software(Apr.2021),received$3.78 million in funding from Parthenon Capital(Jan.2021);Unified Trust Company,a national retirement plan provider and fiduciary(Nov.2020);a
150、nd Goss Advisors,a New Orleansbased RIA(Oct.2020).Other Information:EdgeCo has more than$130 billion in AUM and approximately 500 employees.Pittsburgh,PAFounded:1983 Overview:Mid Atlantic Trust Company is a non depository state-chartered trust company designed to complement the services of Mid Atlan
151、tic Institutional Shares,Inc.Currently offers directed trustee,custody,sub-custody,paying agent,and reporting services for the retirement and trust space.M&A and Capital-Raise Activity:The company received$125 million of debt financing from Antares Capital,Madison Capital Funding,and NXT Capital in
152、April 2022.Other Information:The company has more than 100 employees and is owned by EdgeCo.Greenwood Village,COFounded:1891 Overview:Owner and operator of a retirement plan services business.The company is engaged in the business of handling corporate and state government retirement plans.Assists o
153、ver 17 million customers and over 70,000 organizations administer over$1.2 trillion in plan assets M&A and Capital-Raise Activity:The company was formed through the merger of Great-West Financial Retirement Plan Services,Great-West Retirement Services and the retirement business of Putnam Investment
154、s on October 30,2014.Other Information:The company has more than 7,120 employeesWashington,D.C.Founded:1972 Overview:Financial services company focusing on providing retirement plans,education,investments,and advice to public employees.457 and 401(k)plans,TDFs,stable value,target-risk funds,retireme
155、nt health savings,and lifetime income funds.Serves more than 1.5 million participant accounts and approximately 9,800 plans across the U.S.Other Information:MissionSquare has approximately$74 billion in AUM and more than 800 employees.Sources:Company websites,FactSet,PitchBook,press articles.Select
156、Company ProfilesTraditional Recordkeepers(cont.)31CompanyLocationCompany DescriptionPhiladelphia,PAFounded:2001 Overview:Leading conflict-free retirement plan recordkeeper.Offers retirement plans to businesses,school districts,municipalities,nonprofits,and individuals.Operates with all custodians an
157、d data integrators.Other Information:PCSRetirement has 281 employees.New York,NYFounded:1918 Overview:Specializes in providing retirement plans,IRAs,mutual funds,and life insurance.Provides a sustainable retirement system for people in academic,governmental,cultural,and other nonprofit fields.Offeri
158、ngs include annuities,IRAs,mutual funds,brokerage accounts,and managed accounts.M&A and Capital-Raise Activity:24Storage AB,a system that offers storage facilities for individuals and corporations(Nov.2021),and 95 Express,a provider of responsive,cost-effective,on-time,and environmentally safe trans
159、portation solutions(Dec.2019).Other Information:TIAA has$1.3 trillion in AUM and more than 10,000 employees.Sources:Company websites,FactSet,PitchBook,press articles.Select Company ProfilesAggregators32CompanyLocationCompany DescriptionRaleigh,NCFounded:1986 Overview:Provider of investment research
160、and advisory services,specializing in offering retirement plan and investment advisory services to plan fiduciaries,executives,and high-net-worth individuals.Provides fiduciary process management,discretionary investment management,financial and estate planning,wealth planning,wealth management,and
161、risk management services.M&A Activity:Crescent Capital Consulting,a provider of consulting services(Jan.2022);Portfolio Evaluations,a provider of institutional investment and retirement plan consulting services(Dec.2021);and Rinet Company,a provider of wealth and investment management services(Nov.2
162、021).Other Information:The company has approximately 47 employees.Chicago,ILFounded:1998 Overview:Full-service global insurance brokerage and financial services firm providing risk management,insurance,employee benefits,and retirement and wealth management products and services.Hub Retirement and Pr
163、ivate Wealth(RPW)offers institutional and retirement services to for-profit and not-for-profit organizations and customized private wealth management services to individuals and families.M&A Activity:Serial acquirer of insurance,wealth,and retirement firms,having completed more than 100 acquisitions
164、 since 2021.Other Information:Hub has more than 15,000 employees and 530 offices across North America.Overland Park,KSFounded:2006 Overview:Provider of personal financial planning,reporting,consulting,and investment advisory services to individuals,pension and profit-sharing plans,trusts,estates,cha
165、ritable organizations,corporations,and business entities.One of the fastest growing wealth managers,with approximately$60 billion in AUM/A.M&A Activity:Completed eight acquisitions in 2022.Other Information:Mariner has more than 1,000 employees and more than 75 locations across the U.S.Atlanta,GAFou
166、nded:2000 Overview:Provides brokerage,risk management,consulting,and employee benefits insurance products and services to employers,employees,individuals and families,agencies/alliance,small and midsized businesses,and individuals in the United States.The company has more than 100,000 customers and
167、165 offices nationwide.Majority-owned by Onex Corporation.M&A Activity:OneDigital completed seven wealth acquisitions in 2022.Other Information:The company has approximately$107.8 billion AUM/A.Sources:Company websites,FactSet,PitchBook,press articles.Select Company ProfilesAggregators(cont.)33Compa
168、nyLocationCompany DescriptionOverland Park,KSFounded:2017 Overview:Provider of financial services intended for individuals and corporate clients.Offers full-service financial planning,including fee-based asset management and wealth management,retirement plan advisory services,and plan participant ed
169、ucation.M&A and Capital-Raise Activity:LNC Partners sold its 20%stake in the company to an undisclosed buyer(May 2021),which received an undisclosed amount of development capital from LNC Partners(Oct.2019).Other Information:The company has approximately 158 employees.Newport Beach,CAFounded:1989 Ov
170、erview:Investment management and management consultant firm that helps companies create new plans,and revise existing plans,and assists with compliance,communication,and process development.Helps plan strategies meet sponsor objectives and create funding,expense,and income replacement projections fo
171、r plans.Provides due diligence on plan mergers and acquisitions,prepares sustainability studies,and assists with numbers for labor negotiations.Other Information:The company has approximately 148 employees.Sources:Company websites,FactSet,PitchBook,press articles.Select Company Profiles Robo-Retirem
172、ent/WealthTech/SDIRAs34CompanyLocationCompany DescriptionIrvine,CAFounded:2008 Overview:Mobile application designed to automate micro-investments into ETFs.Uses a proprietary financial engine that features the ability to round up spare change from everyday purchases to invest into a professionally m
173、anaged portfolio of index funds.The company also provides debit card,personal checking,investment,and retirement accounts,enabling users to invest small amounts of money from spare change every day.M&A and Capital-Raise Activity:Raised$300 million of Series F venture funding in a deal led by TPG in
174、2022,putting the companys pre-money valuation at$1.5 billion.Other Information:Acorns has more than 300 employees.Westlake,OHFounded:2003 Overview:Equity Trust is a provider of self-directed IRAs and 401(k)s,with more than 130,000 clients in all 50 states.Fulfills the custodial and administrative du
175、ties required for each type of investment account a person holds.Clients can diversify their retirement plans into assets such as real estate,private placements,notes,deeds of trust,tax liens,and foreign currency.Other Information:The company has$12 billion of AUM and more than 300 employees.Chicago
176、,ILFounded:2015 Overview:Halo Investing is a multi-issuer technology platform that provides advisory services to investment management companies.Offers advisors and investors access to structured notes,market-linked CDs,buffered ETFs,and annuities and has a suite of tools to analyze,customize,execut
177、e,and manage the most suitable protective investment product for a portfolio.M&A and Capital-Raise Activity:Raised$103 million of Series C venture funding in 2018,led by Owl Capital at a pre-money valuation of$600 million.Other Information:Headquartered in Chicago with additional offices in Zurich,D
178、ubai,and Singapore.Miami Beach,FLFounded:2010 Overview:IRA Financial Group is a financial technology company that offers digital solutions to invest retirement funds in alternative assets.Offers self-directed plans for investments in products such as individual retirement accounts(IRA),solo 401(k)s,
179、and ROBS and allows tax-free investment in domestic or foreign real estate.Investment partnerships with Bitstamp,Capital2Market,Swan Bitcoin,Grayscale,ErisX,Yieldi,OANDA,Equifund,BlockFi,and BITRIA.Other Information:Helped more than 20,000 clients invest$4.6 billion in alternative assets.Sources:Com
180、pany websites,FactSet,PitchBook,press articles.35CompanyLocationCompany DescriptionPittsburgh,PAFounded:2015 Overview:Open architecture technology platform for IRA businesses,custodians,and advisors.Technology solution also addresses the DOL fiduciary regulations,captures IRA rollovers,and simplifie
181、s automatic and small-balance IRAs.M&A and Capital-Raise Activity:Received$22 million Series C funding in 2022.Other Information:iraLogix has approximately 80 employees.Centennial,COFounded:2013 Overview:Retirement plan services provider of trust,custody,IRA,and record-keeping services to the retire
182、ment plan industry.Specializes in record-keeping solutions for municipalities and nonprofit organizations that manage retirement plans for their employees.Other Information:IPX Retirement has approximately 70 employees.Chicago,ILFounded:2015 Overview:M1 is a personal finance platform that helps peop
183、le manage and grow their money with control and automation for free.The firms platform combines different traditional fintech services,automated investing,borrowing,and banking/spending into one common platform.The platform helps people invest in custom stock and ETF portfolios,borrow low-cost line
184、of credit,and conduct digital banking services that integrate with investments.Other Information:The company has more than$4.5 billion in AUM.Providence,RIFounded:2013 Overview:Marstone is a developer of a digital wealth management platform intended to enhance financial literacy,deepen financial inc
185、lusion,and humanize finance for all.Enables financial institutions to efficiently and affordably reach,acquire,and retain clients who seek straightforward information and engagement around their finances.M&A and Capital-Raise Activity:The company raised$20 million through a combination of Series A1
186、and Series A2 venture funding in a deal led by Apex Fintech Solutions and Amerant Bank in May 2020.Other Information:The company has around 50 employees.Sources:Company websites,FactSet,PitchBook,press articles.Select Company Profiles Robo-Retirement/WealthTech/SDIRAs(cont.)36CompanyLocationCompany
187、DescriptionOak Brook,ILFounded:2000 Overview:SDIRA custodian that provides administrative and custodial services to individuals,advisors,and institutional clients.Millennium Trust oversees 5.2 million individual client accounts(2.7 million IRAs)and$51 billion in total assets under custody.M&A Activi
188、ty:Acquired PayFlex,a provider of health savings accounts and consumer-directed benefit administration services,for$775 million in 2022.Other Information:The company has approximately$25 billion in fund assets under custody and has more than 45,000 unique assets under custody.Lambertville,NJFounded:
189、2015 Overview:A digital wealth management platform designed to help investment advisors optimize their practices.Integrates previously modular features into one seamless suite.Advisors leverage to enable enterprises to organize official databases.Directly interacts with prospective and current clien
190、ts on their business automation needs.Other Information:RobustWealth has approximately 10 employees.Richmond,VAFounded:1999 Overview:Wealthcare is a wealth management innovation company offering capital management and retirement planning services.The firm is the creator of the original goals-based p
191、lanning software released more than 20 years ago and holds 12 patents on this process.Offers a suite of practice-management support services that empower advisors while giving investors a personalized client experience.Other Information:The company has$4.8 billion AUM.Palo Alto,CAFounded:2007 Overvi
192、ew:Automated wealth management platform that offers automated financial planning,investment management,and banking-related services through a mobile application.Utilize a robo-advisor to open an investment account,which offers access to investment strategies and comprehensive automated services,enab
193、ling underserved communities to invest.M&A Activity:Received$70 million in Series H funding in 2022 after terminating the takeover acquisition by UBS.Other Information:The company has approximately$30 billion in AUM.Sources:Company websites,FactSet,PitchBook,press articles.Select Company Profiles Ro
194、bo-Retirement/WealthTech/SDIRAs(cont.)Select Company ProfilesCustomization37CompanyLocationCompany DescriptionToronto,CanadaFounded:2015 Overview:Provides a quick and easy retirement planning and saving experience for Canadians,powered by a turnkey digital platform.Offers an innovative,employer-spon
195、sored digital retirement plan that helps employees of all income levels save for retirement.Employees can create an online account in 10 minutes,and the plan automatically creates an RRSP and TFSA account.Other Information:Common Wealth partners with brokers,advisors,unions,accountants,and payroll a
196、nd HR platforms to provide a full range of services.Scottsdale,AZFounded:2017 Overview:Provider of friction-free,all-digital enrollment services intended to offer a progressive goal-based approach to personalized retirement advice.The companys tool presents an innovative plan enrollment that aligns
197、with each savers situation and provides a better engagement process for financial advisors and recordkeepers of retirement plans.Fully integrated platform for managed account providers(MAP)and in-plan Income Solution providers,including providers Allianz,Franklin Templeton,Leafhouse,and Stadio M&A a
198、nd Capital-Raise Activity:Received two rounds of angel-backed funding of$1.0 million and$0.6 million in 2019 and 2021,respectively.Other Information:iJoin has 10 employees.Austin,TXFounded:2008 Overview:LeafHouse Financial offers investment advisory services to high-net-worth individuals,retirement
199、plans,and other financial professionals and also operates as an investment management firm.Invests in buyout,diversified private equity,private equity growth expansion,and venture capital strategies for retirement plans that range from startups to large institutions(both public and private clients)a
200、cross the U.S.Other Information:The firm provides 3(38)and 3(21)discretionary investment services and has invested in more than 50 record-keeping platforms.New York,NYFounded:2012 Overview:Designs,develops,and operates a retirement and wealth management advisory platform.Helps financial advisors rep
201、ort on,manage,and trade their clients held-away accounts,including 401(k)s,403(b)s,and HSAs.Enables users to access fees paid for IRAs,401(k)s,403(b)s,and brokerage and investment accounts;support in building wealth,holistic wealth planning,tax management,and consolidated reporting.Other Information
202、:Completed an 18-month funding round in February 2022,led by Lightspeed Ventures.Rebranded to“Pontera”as part of the announcement.Sources:Company websites,FactSet,PitchBook,press articles.Select Company ProfilesCustomization(cont.)38CompanyLocationCompany DescriptionChicago,ILFounded:1998 Overview:P
203、rovider of financial wellness,managed account,and retirement planning solutions to employers.Provides BeFine,a financial wellness app that offers emergency fund,debt management,budget creation,and retirement readiness solutions.Offers ProManage PROgram,which provides a managed accounts solution for
204、clients competitive employee benefits package.Other Information:ProManage has approximately$5.1 billion in AUM and 20 employees.Revenues in 2020 were approximately$4.6 million.Chattanooga,TNFounded:2000 Overview:Operates as an investment advisor that provides independent investment recommendations f
205、or employer-sponsored plans.Provides investment guidance,advisory,and account management services to individual investors,plan sponsors,and plan providers.Offers solutions such as custom retirement planning,account management,and retirement counseling.Other Information:ProNvest has approximately$1.3
206、 billion in assets(2020)and 24 employees.Aliso Viejo,CAFounded:2006 Overview:Developer of a data-enabled platform designed to provide an effective and scalable engagement experience.M&A and Capital-Raise Activity:Recently raised$5.0 million through a combination of debt and Series E venture funding
207、from Franklin Templeton and other undisclosed investors in 2021.Other Information:vWise has 28 employees.Sources:Company websites,FactSet,PitchBook,press articles.Select Company ProfilesNewer Turnkey Entrants39CompanyLocationCompany DescriptionSan Francisco,CAFounded:2013 Overview:Operates as an ind
208、ependent financial advisor that provides a platform for employee retirement solutions.Provides its Alt 401(k)plan that offers financial advice to employees,payroll integration,automated admin,and audit coverage.Offers solutions such as automatic deferral updates,employee onboarding communication,emp
209、loyee 401(k)eligibility tracking,and employee automatic enrollment.Other Information:ForUsAll has 62 employees.Austin,TXFounded:2019 Overview:Provides plan administration,recordkeeping,and investment management services to employer-sponsored retirement plans.Services include selecting,monitoring,and
210、 managing the investment menu,qualified default investments,and portfolios for retirement plans.M&A and Capital-Raise Activity:Received$80 million in funding(July 2020).Other Information:Guideline has approximately$3.5 billion in AUM and approximately 250 employees.San Francisco,CAFounded:2015 Overv
211、iew:Operates as a full-service 401(k)and 403(b)provider for small and midsized business employees.Offers solutions such as payroll sync,administrative compliance,investment management,IRS documents,reporting,onboarding,financial advice,automated portfolio management,and support.M&A and Capital-Raise
212、 Activity:Completed Series D funding of approximately$200 million(Aug.2021).Other Information:Human interest has more than 500 employees,and 2020 revenues were approximately$7.1 million.Nashville,TNFounded:2014 Overview:Operates as a global technology business that delivers people-focused retirement
213、 solutions.Offers products that include everything from self-service retirement income solutions to customized platform options.Provides employers,advisors,and participants with retirement savings option solutions.M&A and Capital-Raise Activity:Completed Series D funding of approximately$180 million
214、(June 2021).Other Information:Smart has approximately$2 billion in AUM and approximately 30 employees.Sources:Company websites,FactSet,PitchBook,press articles.Select Company ProfilesNewer Turnkey Entrants(cont.)40CompanyLocationCompany DescriptionNew York,NYFounded:2016 Overview:Operates as a cloud
215、-based,modern record-keeping platform providing the underlying infrastructure to power workplace savings programs.Specializes in retirement plans,advisor-managed accounts,payroll integrations,state saving programs,and additional workplace programs.Helps people more easily offer,administer,and access
216、 workplace investing programs.M&A and Capital-Raise Activity:Sumday Administration,a provider of a finance management platform for smart savers and investors,enabling them to save and invest small amounts(Nov.2021),completed Series C funding of approximately$70 million(June 2021).Other Information:V
217、estwell has 170 employees,and 2020 revenues were approximately$43.6 million.Sources:Company websites,FactSet,PitchBook,press articles.Select Company ProfilesLifetime Income41CompanyLocationCompany DescriptionLiberty Corner,NJFounded:2010 Overview:Operates as an AI-powered platform provider for retir
218、ement decumulation solutions.Offers paycheck solutions to manage planned spending,unplanned spending,and Roth conversions during retirement.Income advice solution that provides advisors with a clients optimal retirement income strategy;safe income portal that optimizes Social Security claim,lifetime
219、 income allocation,and portfolio allocation.Other Information:Income Discovery has approximately$80 billion in AUM and 14 employees.Boston,MAFounded:2008 Overview:Operates as a provider of technology solutions for asset allocation,tax-smart withdrawals,and Social Security.Offers enterprise solutions
220、 such as asset location,multi-account rebalancing,tax-smart withdrawals,tax harvesting,and Social Security.Provides a unified managed household solution that manages wealth by taking all assets,accounts,and holdings from a clients household and coordinating them.Other Information:LifeYield has appro
221、ximately 30 employees.Leawood,KSFounded:2008 Overview:Operates as a technology company that delivers an innovative retirement planning process through its software for financial professionals and consumers.Offers platforms such as Income Solver(for financial professionals)and Income Strategy(for con
222、sumers);both platforms offer tax-efficient withdrawal strategies,coupled with optimal Social Security claiming strategies.Other Information:Retiree Income has approximately 40 employees.Sources:Company websites,FactSet,PitchBook,press articles.Select Company ProfilesAnnuities42CompanyLocationCompany
223、 DescriptionLouisville,KYFounded:2014 Overview:DPL Financial Partners provides a turnkey insurance management platform for RIAs,offering a marketplace of low-cost,commission-free products.Offers commission-free insurance advisory services such as structured variable,deferred income,fixed index,life
224、settlement,disability income,and term and variable universal life insurance.Has partnerships with leading insurance carriers,including Allianz,Equitable,Great American Life Insurance,Lombard Insurance,and Transamerica.Other Information:The company has$1.2 billion in AUM.Topeka,KSFounded:2005 Overvie
225、w:Provider of third-party administration services designed to administer life and annuity products.Life and annuity insurance platform accelerates the digital transformation,enabling users to add value for both distributors and policyholders as well as self-service tools such as producer and policyh
226、older web portals and future-proof operations with insurance BPaaS and TPA services.M&A and Capital-Raise Activity:The company received an undisclosed amount of development capital from Eldridge Industries in 2017.Other Information:The company has more than 70 employees.Summit,NJFounded:2008 Overvie
227、w:Simplicity is a financial products distribution firm that specializes in providing insurance,investment,and business development solutions.Supports independent financial advisors and agents with investment,annuity,and life insurance.Focus on client education,consumer value,and partnership.M&A and
228、Capital-Raise Activity:The company received development capital from Twin Bridge Capital Partners on an undisclosed date.Other Information:The company has roughly 150 employees.Sources:Company websites,FactSet,PitchBook,press articles.Page1.Houlihan Lokey Transactions42.Market Trends113.Self-Directe
229、d IRA Trends164.Market Map,M&A Activity,and Company Profiles225.Valuation Trends436.Appendix49Sources:Public filings,SNL Financial,Capital IQ.Notes:Financial data as of most recent available;market data as of January 27,2023.Companies within each index correspond to the following public comps pages.
230、Total Enterprise Value to LTM EBITDA Total Enterprise Value to LTM EBITDARelative Change in Total Enterprise Value to LTM EBITDAValuationSelect Historical Trading Metrics44Change in Total Enterprise Value to LTM EBITDA9.2x17.8x20.0 x7016786680.0 x4.0 x8.0 x12.0 x16.0 x20.0 x24.0 x28.0 x32.0 x36.0 xJ
231、an-18May-18Sep-18Jan-19May-19Sep-19Jan-20May-20Sep-20Jan-21May-21Sep-21Jan-22May-22Sep-22Jan-23Wealth Mgmt.Technology/ServicesTraditional Asset ManagersIndependent Wealth AdvisorsDiversified Wealth Advisors9.2x0204060800180Jan-18May-18Sep-18Jan-19May-19Sep-19Jan-20May-20Sep-20Jan-21May-21
232、Sep-21Jan-22May-22Sep-22Jan-23Wealth Mgmt.Technology/ServicesTraditional Asset ManagersIndependent Wealth AdvisorsDiversified Wealth AdvisorsValuationSelect Current Average Trading MultiplesEV/2022E RevenueEV/2022E EBITDA2022E P/EWealth Mgmt.Tech/ServicesTraditional Asset ManagersDiversified Wealth
233、AdvisorsIndependent Wealth AdvisorsNote:The above illustrates comparative valuations on a subsector basis across many different company revenue and business model types.The subsequent pages show the trading metrics of the respective companies within each subcategory.45Sources:Public filings,SNL Fina
234、ncial,S&P Capital IQ.Note:Financial data as of most recent available;market data as of January 27,2023.1.9x2.9x3.5x4.3x9.2x8.9x9.9x16.5x14.9x14.9x13.3x35.4xSelect Trading ComparablesWealth Management Tech/Services46Sources:Public filings,SNL Financial,S&P Capital IQ.Note:Financial data as of most re
235、cent available;market data as of January 27,2023.As of January 27,2023(Dollars in millions,except per share data)EV/EV/EBITDAP/Adj.Earnings Company AUM2022E Rev.2023E Rev.2024E Rev.2022E2023E2024E2022E2023E2024EWealthTech&AdviceBroadridge Financial Solutions,Inc.BR$149.46$18,55611.4%(3.0)%n.a.n.a.3.
236、8x3.6x3.5x17.9x16.4x15.8x23.6x20.6x19.6xSS&C Technologies Holdings,Inc.SSNC59.6515,02614.6(23.5)n.a.n.a.4.24.13.911.110.39.712.812.010.8Morningstar,Inc.MORN241.4410,24811.5(12.3)n.a.n.a.6.05.34.727.324.020.5107.354.138.9SEI Investments CompanySEIC62.088,3296.57.8n.a.n.a.3.84.03.812.713.412.217.617.7
237、15.7Envestnet,Inc.ENV66.353,6717.5(7.1)n.a.n.a.3.53.43.020.117.313.835.831.124.0AssetMark Financial Holdings,Inc.AMK26.481,95515.112.951,5203.84.43.73.510.18.67.815.212.811.9High15.1%12.9%$51,5203.8%6.0 x5.3x4.7x27.3x24.0 x20.5x107.3x54.1x38.9xMean11.1(4.2)51,520 3.84.34.03.716.515.013.335.424.720.1
238、Median11.5(5.1)51,520 3.84.03.93.715.314.913.020.619.117.7Low6.5(23.5)51,520 3.83.53.43.010.18.67.812.812.010.8Assets Under Mgmt.TickerClosing Stock PriceMarket Cap.YTD Stock Price Return1-Year Stock Price ReturnSelect Trading ComparablesTraditional Asset Managers47Sources:Public filings,SNL Financi
239、al,S&P Capital IQ.Note:Financial data as of most recent available;market data as of January 27,2023.As of January 27,2023(Dollars in millions,except per share data)EV/EV/EBITDAP/Adj.Earnings Company AUM2022E Rev.2023E Rev.2024E Rev.2022E2023E2024E2022E2023E2024ETraditional Asset ManagersBlackRock,In
240、c.BLK$759.18$113,6927.1%(6.1)%$7,961,3731.5%6.5x6.4x5.7x16.3x15.9x14.0 x22.0 x21.7x19.1xT.Rowe Price Group,Inc.TROW116.2926,0846.6(22.4)1,230,0002.03.84.03.88.711.310.314.617.416.0Franklin Resources,Inc.BEN30.7215,36816.5(1.6)1,297,4001.72.82.92.99.811.410.99.911.911.2Invesco Ltd.IVZ18.308,3231.7(15
241、.7)1,323,3001.33.63.83.69.510.79.711.111.19.5Affiliated Managers Group,Inc.AMG167.816,3215.919.3644,6001.54.04.34.09.510.29.88.58.87.7Janus Henderson Group plcJHG25.794,2719.7(28.9)274,6001.31.71.91.96.47.97.311.013.111.9AllianceBernstein Holding L.P.AB37.863,80110.2(17.0)612,7000.60.70.70.94.04.13.
242、713.514.012.6Cohen&Steers,Inc.CNS71.083,46210.1(13.0)79,1984.36.06.76.114.115.614.319.321.819.5Federated Hermes,Inc.FHI38.683,2816.517.4624,4270.62.42.32.19.29.19.514.012.210.9Artisan Partners Asset Management Inc.APAM36.102,87421.5(13.3)120,6072.63.23.43.29.210.59.711.713.712.7Victory Capital Holdi
243、ngs,Inc.VCTR29.402,0149.6(7.6)147,2572.03.53.63.47.17.36.86.46.76.2Virtus Investment Partners,Inc.VRTS214.361,55012.0(13.5)144,9742.34.44.43.712.012.310.38.48.77.0BrightSphere Investment Group Inc.BSIG22.7694310.69.483,3001.53.13.23.08.89.28.714.315.613.1WisdomTree,Inc.WT5.598002.6(0.2)70,8771.43.33
244、.12.814.013.711.421.522.116.9Diamond Hill Investment Group,Inc.DHIL187.865671.53.523,8822.2n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.High21.5%19.3%$7,961,3734.3%6.5x6.7x6.1x16.3x15.9x14.3x22.0 x22.1x19.5xMean8.8(6.0)975,900 1.83.53.63.49.910.79.813.314.212.4Median9.6(7.6)274,600 1.53.43.53.39.310.69.812.6
245、13.412.2Low1.5(28.9)23,882 0.60.70.70.94.04.13.76.46.76.2Assets Under Mgmt.TickerClosing Stock PriceMarketCap.YTD Stock Price Return1-Year Stock Price ReturnSelect Trading ComparablesAdvisors48Sources:Public filings,SNL Financial,S&P Capital IQ.Note:Financial data as of most recent available;market
246、data as of January 27,2023.As of January 27,2023(Dollars in millions,except per share data)EV/EV/EBITDAP/Adj.Earnings CompanyAUM2022E Rev.2022ENTM2023E2022ENTM2023EDiversified Wealth AdvisorsThe Charles Schwab CorporationSCHW$74.69NA$139,427(10.3)%(16.0)%n.a.5.5x9.7x8.4x8.4x19.0 xn.a.n.a.Ameriprise
247、Financial,Inc.AMP344.45893,53336,27110.615.63.82.47.96.66.614.411.411.4Raymond James Financial,Inc.RJF111.77173,80024,1584.67.412.52.09.06.86.814.910.910.9Stifel Financial Corp.SF66.37NA7,05413.7(9.9)n.a.1.7n.a.n.a.n.a.11.39.49.4High13.7%15.6%12.5%5.5x9.7x8.4x8.4x19.0 x11.4x11.4xMean4.7(0.7)8.12.98.
248、97.37.314.910.610.6Median7.6(1.2)8.12.29.06.86.814.610.910.9Low(10.3)(16.0)3.81.77.96.66.611.39.49.4Independent Wealth AdvisorsLPL Financial Holdings Inc.LPLA$232.00$542,600$18,4677.3%39.5%3.7%2.4x13.3x8.6x8.5x20.4x12.7x12.3xFocus Financial GroupFOCS44.35$350,0003,43819.0(6.7)1.01.66.66.46.010.311.4
249、10.9Avantax,Inc.AVTA29.3535,4431,41315.085.84.01.69.26.86.716.210.710.8Alvarium Tiedemann Holdings,IncALTI9.5560,0001,075(1.8)8.31.8n.a.n.a.n.a.n.a.n.a.n.a.n.a.Silvercrest Asset Management Group Inc.SAMG18.7227,403268(0.3)11.81.02.37.98.57.512.613.711.5High19.0%85.8%4.0%2.4x13.3x8.6x8.5x20.4x13.7x12
250、.3xMean7.827.72.31.99.27.67.214.912.211.4Median7.311.81.81.98.57.67.114.412.111.2Low(1.8)(6.7)1.01.66.66.46.010.310.710.81-Year Stock Price ReturnTickerClosing Stock PriceAssets Under ManagementMarket Cap.YTD Stock Price ReturnPage1.Houlihan Lokey Transactions42.Market Trends113.Self-Directed IRA Tr
251、ends164.Market Map,M&A Activity,and Company Profiles225.Valuation Trends436.Appendix4950Houlihan Lokey is the trusted advisor to more top decision-makers than any other independent global investment bank.2,500Employees35Locations$6 BillionMarket Cap$2 BillionAnnual Revenue25%Employee-OwnedNoDebtNote
252、:As of January 2023.No.1 Global Advisor to Private Equity Firms 1,000+Sponsors Covered GloballyFinancial Sponsors Coverage No.1 Global M&A Fairness Opinion Advisor Over the Past 25 Years 1,000+Annual Valuation EngagementsFinancial and Valuation Advisory No.1 Global Restructuring Advisor$3.0 Trillion
253、 of Aggregate Transaction Value CompletedFinancial Restructuring No.1 Global M&A Advisor for Transactions Under$1 Billion Leading Capital Markets Advisor Raising$100 Billion+in Past Five YearsCorporate Finance1998 to 2022 Global M&A Fairness Advisory RankingsRank AdvisorDeals1Houlihan Lokey1,2322JP
254、Morgan1,0303Duff&Phelps,A Kroll Business938Source:Refinitiv.Announced or completed transactions.2022 Global Distressed Debt&Bankruptcy Restructuring Rankings Rank AdvisorDeals1Houlihan Lokey582PJT Partners303Lazard29Source:Refinitiv.2022 M&A Advisory Rankings Global Transactions Under$1 BillionRank
255、AdvisorDeals1Houlihan Lokey3812Rothschild3693JP Morgan217Source:Refinitiv.Excludes accounting firms and brokers.2021 Most Active Global Investment Banks to Private Equity FirmsRank AdvisorDeals1Houlihan Lokey3232Deloitte2183William Blair183Source:PitchBook.Houlihan LokeyLeading Independent Advisory
256、FirmHoulihan LokeyCorporate Finance OverviewHoulihan Lokeys leading Corporate Finance business is built of world-class resources.51Corporate Finance Mergers and Acquisitions Extensive expertise in mergers,acquisitions,and divestitures for a broad range of clients;our experience in M&A has earned us
257、recognition throughout the industry.No.1 M&A advisor for all U.S.transactions.Capital Markets Offers clients access to financing in the private and public capital markets through the issuance of debt,equity,or hybrid securities.Bankers have decades of combined experience in private markets and a tra
258、ck record of successfully executing financings through changing market conditions.Private Funds Group Extensive fundraising and in-house operating experience.Maximizes the efficiency and effectiveness of the fundraising process for asset managers.Provides tailored advice on the development and imple
259、mentation of strategic initiatives.LEADING M&A ADVISOR TO THE MID-CAP Closed more than 1,900 M&A deals under$1 billion in the past five years.(1)No.1 M&A advisor for all nondepository financial services transactions.(2)LOCAL PRESENCE AND GLOBAL REACH 35 offices in North America,Europe,the Middle Eas
260、t,and the Asia-Pacific region.More than 1,340 cross-border deals since 2011.(1)Outstanding track record with international investors,both on sellside and buyside transactions.UNMATCHED PRIVATE EQUITY COVERAGE No.1 most active investment bank to U.S.and global private equity.(3)22 senior officers ded
261、icated to the sponsor community in North America and Europe.Coverage of more than 1,000 private equity firms,250 hedge funds,and 75 family offices.Dedicated coverage provides proprietary data and knowledge of buyer behaviorSEAMLESS CAPITAL MARKETS EXECUTION Global team of 100 professionals.Advised o
262、n more than 150 deals in 2021 and worked with more than 75 sponsors to raise more than$15 billion of capital.Senior-level contact into all major credit investors.Among the largest dedicated alternative investor coverage teams in the industry,which provides the ability to get early credit reads for u
263、pcoming sellside clientsHoulihan Lokey office locations2022 M&A Advisory Rankings Global Financial Services Transactions Under$1 BillionAdvisorDeals1Houlihan Lokey402Rothschild393JP Morgan274BofA Securities 265Goldman Sachs 24Source:Refinitiv.(1)As of December 31,2021,according to Refinitiv.(2)Since
264、 2010,$50 million to$600 million deal value.(3)In 2021,according to PitchBook.Minority investments in a variety of wealth and asset managers and general partnerships across asset classes.Includes both financial and strategic buyers.Houlihan Lokey Retirement and Asset ManagementOverview of M&A and Ca
265、pital Markets SolutionsHoulihan Lokey has extensive experience structuring and negotiating recent transactions involving asset and wealth managers.Minority Stake DealsMajority andControlDealsAsset-Level Financing and SalesCompany-Level FinancingSelected Wealth and Asset Management Transaction Experi
266、enceSelect Advisory Areas Full sellside and buyside engagements,featuring majority,path to control,and control transactions.Term and nonterm financing for asset companies.Running strategic processes,executing bulk asset sales and purchases.Capital markets solutions for financial services operating c
267、ompanies.Secured and unsecured debt,mezzanine debt,structured preferred,and common equity.Mergers and AcquisitionsCapital Markets Related52Tombstones included herein represent transactions closed from 2014 forward.*Selected transactions were executed by Houlihan Lokey professionals while at other fi
268、rms acquired by Houlihan Lokey or by professionals from a Houlihan Lokey joint venture company.has merged withExclusive Sellside Advisorhas secured multiple Loan Facilities from an undisclosed investor$80,000,000 Term Loan$45,000,000 Revolving Credit Facility$25,000,000 Bridge LoanCo-Placement Agent
269、has sold a minority equity GP stake toSellside Advisorhas merged withBuyside AdvisorAn affiliate of has acquiredBuyside Advisorhas acquiredBuyside Advisorhas completed a financing consisting of$24,000,000Series D Convertible Preferred StockPlacement AgentConvertible Preferred Stock$47,500,000Placeme
270、nt AgentProject HeliosSolar Development LendingABL RevolverDividend Recapitalization$100,000,000Exclusive Placement Agenthas merged withSpecial Committee Advisorhas sold a minority interest toHarvest Capital Strategiesa subsidiary ofSellsideAdvisor*Series A Senior Secured NotesGrowth Capital$50,000,
271、000Exclusive Financial Advisor&Placement Agent$100,000,000 Senior Secured Term Loan Exclusive Placement Agenthas sold a minority stake toa portfolio company ofSellsideAdvisor*sold its entire Investment Portfolio for$793 million to funds advised bySellsideAdvisorhas sold its interests in the MCC Seni
272、or Loan Strategy JV Portfolio to a private fund managed bySellside Advisorhas acquiredAmerica First Capital Associates Limited Partnership TwoThe General Partner ofBuyside Advisorhas acquiredBuyside AdvisorSenior Secured Term Loan RecapitalizationExclusive Placement Agenthas sold a minority equity G
273、P participation(a“GP stake”)toSellside Advisorhas sold minority equity stakes toTPG Sixth Street PartnersandDyalCapital partnersExclusive SellsideAdvisorhas repurchased their minority seed interest fromBuyside AdvisorSeries B Cumulative Redeemable Preferred Stock with Warrants Recapitalization$325,0
274、00,000Exclusive Placement Agenta portfolio company ofhas received financing from funds managed byCapital Raising$500,000,000 Senior Secured Term Loan with Warrants$1,650,000,000 Asset-Based Term FacilityRecapitalizationFinancial Advisor&Exclusive Placement AgentDisclaimer 2023 Houlihan Lokey.All rig
275、hts reserved.This material may not be reproduced in any format by any means or redistributed without the prior written consent of Houlihan Lokey.Houlihan Lokey is a trade name for Houlihan Lokey,Inc.,and its subsidiaries and affiliates,which include the following licensed(or,in the case of Singapore
276、,exempt)entities:in(i)the United States:Houlihan Lokey Capital,Inc.,and Houlihan Lokey Advisors,LLC,each an SEC-registered brokerdealer and member of FINRA(www.finra.org)and SIPC(www.sipc.org)(investment banking services);(ii)Europe:Houlihan Lokey EMEA,LLP,Houlihan Lokey(Corporate Finance)Limited,an
277、d Houlihan Lokey UK Limited,authorized and regulated by the U.K.Financial Conduct Authority;Houlihan Lokey(Europe)GmbH,authorized and regulated by the German Federal Financial Supervisory Authority(Bundesanstalt fr Finanzdienstleistungsaufsicht);(iii)the United Arab Emirates,Dubai International Fina
278、ncial Centre(Dubai):Houlihan Lokey(MEA Financial Advisory)Limited,regulated by the Dubai Financial Services Authority for the provision of advising on financial products,arranging deals in investments,and arranging credit and advising on credit to professional clients only;(iv)Singapore:Houlihan Lok
279、ey(Singapore)Private Limited and Houlihan Lokey Advisers Singapore Private Limited,each an“exempt corporate finance advisor”able to provide exempt corporate finance advisory services to accredited investors only;(v)Hong Kong SAR:Houlihan Lokey(China)Limited,licensed in Hong Kong by the Securities an
280、d Futures Commission to conduct Type 1,4,and 6 regulated activities to professional investors only;(vi)India:Houlihan Lokey Advisory(India)Private Limited,registered as an investment advisor with the Securities and Exchange Board of India(registration number INA000001217);and(vii)Australia:Houlihan
281、Lokey(Australia)Pty Limited(ABN 74 601 825 227),a company incorporated in Australia and licensed by the Australian Securities and Investments Commission(AFSL number 474953)in respect of financial services provided to wholesale clients only.In the United Kingdom,European Economic Area(EEA),Dubai,Sing
282、apore,Hong Kong,India,and Australia,this communication is directed to intended recipients,including actual or potential professional clients(UK,EEA,and Dubai),accredited investors(Singapore),professional investors(Hong Kong),and wholesale clients(Australia),respectively.Other persons,such as retail
283、clients,are NOT the intended recipients of our communications or services and should not act upon this communication.Houlihan Lokey gathers its data from sources it considers reliable;however,it does not guarantee the accuracy or completeness of the information providedwithin this presentation.The m
284、aterial presented reflects information known to the authors at the time this presentation was written,and this information issubject to change.Houlihan Lokey makes no representations or warranties,expressed or implied,regarding the accuracy of this material.The viewsexpressed in this material accura
285、tely reflect the personal views of the authors regarding the subject securities and issuers and do not necessarily coincidewith those of Houlihan Lokey.Officers,directors,and partners in the Houlihan Lokey group of companies may have positions in the securities of the companies discussed.This presen
286、tation does not constitute advice or a recommendation,offer,or solicitation with respect to the securities of any companydiscussed herein,is not intended to provide information upon which to base an investment decision,and should not be construed as such.Houlihan Lokey or its affiliates may from time to time provide investment banking or related services to these companies.Like all Houlihan Lokey employees,the authors ofthis presentation receive compensation that is affected by overall firm profitability.5354Corporate Finance Financial RestructuringFinancial and Valuation AdvisoryHL.com