1、Wealth Management Market UpdateSPRING 2023 UPDATEMergers and Acquisitions Remain Robust Wealth management M&A activity ended in 2022 with 273 transactions,making it the ninth consecutive year of record activity,a 10.5%increase from 2021.2023 Q1 M&A activity slowed slightly,with 48 transactions,but r

2、emains active as strategics see M&A as a primary approach for growth and private equity continues to invest in the space.Transaction volume was generally evenly weighted across platforms managing$250 million to$5 billion of AUM,but higher outside of these ranges.Notable activity includes Blucora,Inc

3、.becoming a pure play wealth manager and IBD through the divestiture of TaxAct,its tax software business,and also Tiedemann closing its SPAC IPO.Private Equity InvolvementSponsors continue to enter the space and grow their existing wealth management platforms through bolt-on transactions.Theres an e

4、stimated 100 private-equity-backed platforms in total.Clayton Dubilier&Rice LLC has agreed to acquire Focus Financial Partners Inc.for$53 per share in cash,representing a 14.9x valuation of LTM EBITDA.KKR-backed Beacon Pointe Advisors,LLC has acquired Pinnacle Wealth Management an employee-owned inv

5、estment manager.KKR-backed Beacon Pointe Advisors,LLC has acquired Ailsa Capital,Inc.,an employee-owned investment manager.Onex Corp.-backed OneDigital Investment Advisors has acquired the wealth and retirement services of The Huntington National Bank.Public Valuations Public company valuations for

6、wealth managers with AUM greater than$1.0 billion have generally trended between 15.0 x19.0 x over the past five years.Managers with less than$1.0 billion in AUM typically have traded at a significant discount over the same period of approx.4.0 x6.0 x.Activity Remains Strong with Dynamic Deal Terms

7、Despite overall market decline,many key acquirers maintain strong pipelines in both succession transactions and strategic growth partners as they proceed with their effort to consolidate the hyper-fragmented wealth management industry.Although deal activity has been resilient,many sellers are experi

8、encing fatigue and have structured deals to participate if and when financial markets recover.In some cases,buyers are designing deal terms to not penalize managers for missing an annual EBITDA target if an overall target is met within the transaction time frame.Among the four distinct buyer categor

9、iesconsolidators,banks,RIAs,and otherRIAs have increased their total transaction volume to just over 25%,while consolidators continue to account for the majority of transaction volume at approx.50%.Wealth Management Market SummarySpring 2023 Industry Updates and Drivers2Eric WeberManaging DirectorNe

10、w YorkEWeberHL.com646.645.1026 Our dedicated team has an extensive level of experience in the wealth and asset management sectors,specializing in M&A for wealth managers,their assets,and manager contracts.We have transacted or transferred more than$189 billion in AUM since 2015.Charles HibbsSenior V

11、ice PresidentLos AngelesCHibbsHL.com310.712.6592 Alexandra LebenthalSenior AdvisorNew YorkALebenthalHL.com646.259.7522 Christian KentManaging DirectorLondonCKentHL.com+44(0)20 7907 4272Select Market Drivers Houlihan Lokey Wealth Management TeamSources:SNL Financial,Mergermarket,company news releases

12、,industry news reports.TransactionDeal DateExclusive DiscussionsIn MarketJanuary2023August 2022April2022Target DescriptionWealth manager with$5-10 billion in AUM,average account size of$400,000 and average household account size of$1.1 million.Provider of self-directed retirement solutions through a

13、 single platform managing more than$5.3 billion in AUA and 23,000 plans.Investment advisor for high-net-worth families,trusts,foundations,and endowments.Privately owned investment firm,global multifamily office,and merchant banking boutique.Leading independent wealth management business employing mo

14、re than 120 employees and managing more than$2.7 billion in AUM.Large independent financial advice business,serving more than 20,000 clients through more than 500 staff across 17 locations.Houlihan Lokey RoleSellside AdvisorSellside AdvisorDeal Accounting,Financial Reporting,and Valuation Advisory S

15、ervicesFinancial AdvisorSellside AdvisorSelected Wealth TransactionsHoulihan Lokey Transaction SpotlightSellside AdvisorProjectGriffinSellside AdvisorProjectAscent3Selected Wealth TransactionsHoulihan Lokey Transaction Spotlight(cont.)4TransactionDeal DateMarch2022February2022January2022July 2021Feb

16、ruary 2021Target DescriptionFee-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 U.S.for the past three years.Independent investment management business,providing portfolio management,stockbroking,and financ

17、ial planning services to private clients.Leading managed account defined contribution(DC)technology platform utilizing its proprietary technology to service more than$2.3 billion in AUM and more than 4,000 plans.Financial planning firmoffering services(such as financial,investment,and pensions advic

18、e)to both businesses and individuals.Leading IFA business serving more than 21,000 clients through a network of 135 independent financial advisors.Houlihan Lokey RoleFinancial AdvisorSellside AdvisorSellside AdvisorSellside AdvisorCapital Raise Advisorhas been acquired bySellside AdvisorWealth Manag

19、ement TransactionsExtensive Global Wealth Management ExperienceSelect Wealth Management 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 pro

20、fessionals from a Houlihan Lokey joint venture company.has been acquired bySellside Advisor5Saltus Group Secures Significant Investment from Preservation Capital PartnersHoulihan Lokey Case Study On August 3,2022,Saltus Group(Saltus)secured a significant investment from Preservation Capital Partners

21、(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 individuals.The investment will signific

22、antly 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 advisers,and it broadens the reach of the Saltus Partnerships Programme(SPP).The transaction closed on Decemb

23、er 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.Saltus is an independent wealth managemen

24、t 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 than 120 people and has more than$2.7 bi

25、llion 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 in AUM and has more than 75 years of di

26、rect investing experience with a strong record of supporting businesses in their growth.Sources:Public filings,transaction press release.6 TMGs commitment to diversity,impact,and ESG aligns with Vistrias mission and values.Ability to leverage Vistrias Portfolio Resources Group,M&A experience,and res

27、ources to scale TMGs business.TMG is positioned for transformative growth and attractive shareholder returns upon successful rollup execution.The Vistria Group Acquires The Mather GroupHoulihan Lokey Case Study7 Majority stake transaction.Vistria committed significant capital to support TMGs continu

28、ed growth,both organically and through additional acquisitions.The announcement represents Vistrias first partnership in the wealth management space and fosters a dynamic new venture between two Chicago-based firms.As part of the investment,Vistria is backing TMGs CEO,Chris Behrens,and its current l

29、eadership team,to further its expansion into new geographies and services.Transaction OverviewSources:Public filings,transaction press release.The Vistria Group(Vistria)has made a strategic partnership in and recapitalization of The Mather Group(TMG).Houlihan Lokey served as financial advisor to Vis

30、tria and assisted in negotiating the transaction.Vistria Rationale Supports vision of being a national boutique,while enhancing the client experience.Cultural fit,similar investment philosophy,commitment to integrity,and high-touch service.Provides a capital structure to grow both organically and th

31、rough M&A.Ability to leverage broader network of operating partners and relationships with leading financial services companies.TMG RationaleVistriaTMG TMG is a fee-only fiduciary firm serving primarily high-net-worth individuals,with approximately$8.0 billion in AUM as of March 31,2022.Founded in 2

32、011 and headquartered in Chicago,with offices throughout the U.S.,TMG is a registered investment advisor,providing discretionary and nondiscretionary advice.Since January 2020,TMG has completed 10 acquisitions,and currently has more than 140 advisors and staff around the U.S.TMG has scaled its AUM f

33、rom$1 billion to$8 billion during the past five years,ranking among Barrons list of Top 100 RIA Firms in the country for the past four years.We are thrilled to establish a partnership with Chris and The Mather Group team.Their reputation in the industry and among clients is unparalleled,and we know

34、there is great opportunity to continue the companys growth trajectory.Michael Castleforte,Partner and Co-Head of Financial Services at Vistria“”Vistria is a Chicago-based private investment firm,partnering with middle-market businesses in the healthcare,education,and financial services industries.Te

35、am comprises highly experienced operating partners and investment professionals.Operates at the intersection of purpose and profit with companies that are passionate about growth and have a commitment to the community.Vistria is using its fourth fund,which raised$2.7 billion in 2021,to invest in TMG

36、.Focus Financial Partners Receives Acquisition Proposal from Clayton,Dubilier&RiceFebruary 27,20238Proposed Purchase Price$53.00Fully Diluted Shares 81.4Implied Equity$4,314Cash$129Debt3,274Net Debt$3,145Total Enterprise Value$7,459x EBITDA LTM$50014.9xx Adj.EBITDA 2022E 522 14.3xx Adj.EBITDA 2022E+

37、$10mm cost savings53214.0 xx Adj.EBITDA 2022E+$10mm cost savings+_10%market improvement58412.8x Focus has entered into an exclusivity agreement to negotiate the terms in which CD&R would acquire Focus for$53 per share in cash.CD&R submitted the non-binding offer as its“best and final”.No further pri

38、ce negotiation and subject to a non-waivable approval of a majority of the voting power of disinterested shareholders.The purchase price represents a 36%premium to Focus 60-day volume-weighted average price as of February 1,2023,and a 48%premium to the closing price on December 28,2022.(1)Funds mana

39、ged by Stone Point Capital LLC are considering retaining a portion of their investment in Focus and providing new equity financing as part of the proposed transaction.Leading partnership of independent,fiduciary wealth management firms.Partner firms retain their operational independence.Serve indivi

40、duals,families,employers,and institutions with comprehensive wealth management services.Focus provides access to best practices,resources,and continuity planning for its partner firms.On February 27,2023,Focus Financial Partners(Focus)entered into an exclusivity agreement for a limited period of tim

41、e with Clayton,Dubilier&Rice(CD&R),to negotiate the potential acquisition of Focus for$53 per share in cashProposed Transaction OverviewFocus Financial Partners Inc.Clayton,Dubilier&Rice Global private equity manager,invests in and builds valuable businesses.Focuses on the following sectors:Business

42、 services Consumer/retail Financial services Healthcare Industrial Technology sectors HQ:New York,NY Founded in 2004 Public ownership since 2018(NASDAQ:FOCS)85+partner firms$2.1 billion LTM revenue HQ:New York,NY Founded in 1978$57 billion+AUM 60+investments Source:Public filings,financial data as o

43、f September 30,2022.(1)The day the Special Committee specifically authorized its financial advisors to broaden their outreach and contact other potential bidders regarding interest in a definitive transaction.$millions,except per share Market Activity and CharacteristicsNumber of transactions by sel

44、ler size,$in millionsRobust M&A MarketTransaction Activity Number of transactions executed per yearWealth management M&A activity ended in 2022 with 273 transactions,making it the ninth consecutive year of record activity.Q1 2023 M&A activity slowed slightly but remains active with 48 transactions.E

45、stablished M&A Activity(1)Quarterly M&A Activity by Target SizeSource:SNL Financial.(1)Includes transactions that have entered into a definitive agreement.727348505003002002120222023Count by YearCount by QuarterYTDQ1 202325746649051015202530$100

46、$250$250$500$500$1,000$1,000$2,500$2,500$5,000Morethan$5,000NA2022 Q12023 Q110Private Equity Continues to Be ActiveAcquirers and Select TransactionsSponsors continue to increase their interests in the independent advisory sector,executing larger deals focused on consolidation.Sources:Public filings,

47、S&P Capital IQ,company news releases Note:Houlihan Lokey served as financial advisor in blue shaded transactions.Greer Anderson CapitalLarge InitialInvestment Larger platforms,usually an initial purchase for a sponsor as they enter the sector;typically established operations and an ability to scale

48、easily.Bolt-On Acquisitions Acquisitions by sponsor-owned entity that is looking to add additional assets and employees;typically rolls up under the marquis platform.Product Expansion Acquisition of tangential products or strategies(i.e.,tax,trust,financing,etc.)to offer clients in core business;may

49、 be acquired by platform or by the same sponsor under separate ownership and management.Exits Sale of platforms by founders or sponsors.Can be through a sale or IPO;may retain a minority or legacy interest post closing.Drivers of Value Organic growth,accretive acquisitions,expenses savings,operating

50、 leverage,product/service build-out,multiple expansion.Drivers of Private Equity Activity20002MonthTargetAcquirerAUM/AUA Mar.$5,600Mar.1,089Mar.1,115Mar.3,800Feb.2,000Feb.2,000Feb.4,600Jan.283Jan.278Jan.575Drivers of Transaction ActivityEvolving Wealth Management Lan

51、dscapeSources:SNL Financial,Mergermarket,company filings,industry news reports.Private Bankingand BrokerageWirehouseRegionalIBDsRIAs and Service With more than 7,500 retail-focused advisors in the U.S.,significant consolidation opportunities exist for all types of firms.New investors provide not onl

52、y business expertise and scale but also networks for sourcing M&A opportunities.Strategic buyers are becoming more involved in transactions,representing nearly half of publicized deals from about one-third of deals a decade ago.Shift to independence has attracted the interest of(and demand for)priva

53、te capital.Family offices,sovereign funds,insurance companies,pension funds,private investors,and private equity firms are directly and indirectly investing in independent advisory firms.With median profit margins of 20%25%,cheap borrowing costs,and low capital requirements,private investors are att

54、racted to the potential of doubling their money within three to five years.$millionsSelect Advisor TransactionsIndustry Trends and Market DriversWealth Management Landscape12RIA Acquisition Market OverviewConsolidation continues,with 45+firms making more than one acquisition since April 2021 and the

55、 25 largest acquirers adding more than$350 billion of AUM during that time.Top 25 Acquirers by Deal Volume(Past Two Years)Top 25 Acquirers by Cumulative AUM(Past Two Years)By cumulative acquired AUM,$millionsBy number of deals,$millionsSource:Public filings.Note:Represents transactions from April 1,

56、2021,through March 31,2023.Buyer NameDeals%of Total DealsTotal AUM AddedAverage Target AUMFocus Financial(and affiliates)439.1%$48,457$1,127Wealth Enhancement Group326.8%32,2451008Mercer Advisors296.1%17,739612Mariner Wealth Advisors255.3%35,0321,401Beacon Pointe Advisors214.4%9,606457CI Financial17

57、3.6%78,5824,622Creative Planning173.6%22,5271,325Hightower Advisors163.4%16,2851,018Allworth Financial163.4%5,619351MAI Capital Management143.0%5,197371CAPTRUST122.5%22,5991,883Merit Financial Advisors122.5%3,774315EP Wealth Advisors102.1%3,567357Cerity Partners102.1%25,0772,508Prime Capital Investm

58、ent Advisors91.9%5,526614OneDigital Health&Benefits81.7%3,602450HUB International71.5%10,2831,469Kestra Financial71.5%3,805544Savant Wealth Management71.5%6,949993Dynasty Financial Partners61.3%5,675946The Mather Group51.1%954191Edelman Financial Engines40.8%2,226557SageView Advisory Group40.8%3,436

59、859Perigon Wealth Management40.8%1,425356Coldstream Wealth Management30.6%2,033678Top 25 Total33871.5%$372,220$1,101Other13528.5%376,6522,790Total473100.0%$748,872$1,583Buyer NameTotal AUM Added%of Total DealsNo.of FirmsCI Financial$78,58210.5%17Focus Financial(and affiliates)48,4576.5%43LPL Financi

60、al45,0006.0%2Advisor Group40,0005.3%1Mariner Wealth Advisors35,0324.7%25Wealth Enhancement Group32,2454.3%32Cerity Partners25,0773.3%10Cetera Financial Group24,8003.3%1CAPTRUST22,5993.0%12Creative Planning22,5273.0%17Callodine Group21,0002.8%1Alvarium Tiedemann Holdings18,4152.5%1Baird18,0002.4%1Mer

61、cer Advisors17,7392.4%29Hightower Advisors16,2852.2%16Integrity Marketing Group14,9642.0%2Galway Holdings12,3001.6%1Parthenon Capital Partners12,0001.6%1Cresset Asset Management10,6001.4%3HUB International10,2831.4%7Beacon Pointe Advisors9,6061.3%21AssetMark9,5441.3%1Sequoia Financial Group8,1001.1%

62、3Pathstone8,0001.1%3Flexpoint Ford7,1631.0%1Top 25 Total$568,31875.9%251Other180,55424.1%222Total$748,872100.0%47313Accessing AlternativesKey Activity DriversAlternatives Are Growing in Importance Alternatives AUM to approach$20 trillion by 2025.Significant growth track record in alternatives share

63、of global AUM.$5.9 trillion AUM in 2008(15%of$39 trillion global AUM).$14.2 trillion AUM in 2019(16%of$89 trillion global AUM).Projected to increase to 17%share of$103 trillion global AUM by 2024.Access Is Challenging and Needs to Extend to the HNW and RIA Channels U.S.HNW AUM to approach$80.0 trill

64、ion by 2025 across 3+million households.40%of financial advisors allocate to private alternative products.Enough Fees in Value Chain for Significant Distribution Economics Asset management is converging with fintech as:Large product manufacturers need to reach new client segments.Large distributors/

65、advisors need streamlined solutions to better service their existing clients.Complex parts of the process are becoming tech-enabled(e.g.,subscription docs).Sources:Preqin,Ernst&Young,and Boston Consulting Group.15Key ChallengesThe workflow of product from manager to end investor is complexReaching a

66、nd connecting with financial advisors(FAs)is difficult and involves many gatekeepers Product manufacturing and distribution are highly regulatedCosts can be high due to small investment amountsPlayers in this space need to consider the following challenges16Growth in Alternatives:Private ClientsMark

67、et OverviewExpected U.S.HNW Investable Asset GrowthAsset Allocation Among Millionaires and UHNWPercent of FAs Investing in Alternatives by Channel$55.0$70.0$15.02016Absolute Growth2021U.S.HNW Investable Assets ($T)HNW investable asset growth expected to significantly increase.Significant allocations

68、 to PE and hedge funds among high-net-worth and ultra-high-net-worth individuals.Alternative distribution platforms at the nexus of the secular trend toward alternatives and tech-enabled investment services.Headwinds include advisor platform adoption;entrenched investment processes preventing large-

69、scale onboarding.Diverse product suite and usability are key to gathering significant assets.88%83%71%59%51%67%15%18%13%WirehouseIBDRIAPE FundsHedge FundsDirect DealsSources:EY Wealth Management Outlook,Cerulli Associates,KKR,iCapital Network:Advisors and Alternatives Investments,Statista Private We

70、alth Management Dossier,KKR Insights Global Macro Trends.Note:“FAs”refers to financial advisors.50%26%24%31%49%45%10%22%28%9%3%3%0%10%20%30%40%50%60%70%80%90%100%110%UHNWHNWPensionAlternativesStocksBondsCash17Accessing AlternativesHighlighted Industry LeadersFund Placement AgentsAsset Manager Distri

71、butionPrivate Company and Fund Liquidity VenuesEquity Crowdfunding/Private PlacementReal Estate/MortgageTech-Enabled HNW Fund DistributionOther Fund Distribution/ServicingSpecialty Assets/Competitive Landscape:Selected PlayersAccessing Alternatives18TransactionDeal DateMarch2022November2020May2019Fe

72、bruary 2018November2015Deal Value$1.6 Billion$160 MillionNot DisclosedNot DisclosedNot DisclosedAUM-$22.5 Billion$2.5 Billion-SectorPrivate Funds(Liquidity Venue)Private CompanySecondary(Investment Marketplace)Alternatives(Fund Placement)Alternatives(Distribution Platform)Alternatives(Fund Placement

73、)DescriptionThe combination provides significant capital to fund growth,accelerate its technology platform,strengthen its network position,and unlock further opportunities for expansion.The combination creates a leading global private securities marketplace serving the liquidity needs of high-growth

74、 unicorn companies and their employees.Mercury,a global capital-raising and investment advisory firm,has been acquired by Investcorp,a leading global provider and manager of alternative investments products.The combination of Altegris and Artivest creates a solutions-driven alternative investment ma

75、rketplace with$3 billion of asset flows serving 10,000+clients.Eaton has served as intermediary for more than$68 billion of total capital commitments,from institutional investors to 90 differentiated funds.Houlihan Lokey RoleFairness OpinionSellside AdvisorSellside AdvisorSellside AdvisorSellside Ad

76、visor*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 company.Selected Houlihan Lokey Transaction SpotlightAccessing Alternativeshas been acquired bySellside Advisor*a portfoli

77、o company ofhas merged witha portfolio company ofSellside Advisor*and its wholly-owned subsidiaryhave been acquired bySellside Advisor*has been acquired bySellside Advisorhas merged withFairness Opinion19Highlighted Capital Raises:Accessing AlternativesDateTargetTarget TypeTarget CountryLead Investo

78、r(s)Deal Value(US$M)Pre-Money EVDeal TypeFeb.2023Alternatives(Partnership Enablement)U.S.$133Growth EquityJan.2023Alternatives(Fund Administrator)U.S.$10$30Series ANov.2022Alternatives(Investment Marketplace)U.S.-Series AOct.2022Alternatives(Distribution Platform)U.S.-Series ASep.2022Alternatives(In

79、vestment Marketplace)U.S.-$340Series AAug.2022Alternatives(Liquidity Solutions)U.S.-$71Strategic InvestmentJuly 2022Alternatives(Fund Administrator)U.S.-Strategic InvestmentJune 2022Alternatives(Investment Marketplace)U.S.-$6,000Strategic InvestmentMay 2022Venture Capital(Investment Marketplace)U.S.

80、$15.0-Series AMay 2022Alternatives(Distribution Platform/Inv.Marketplace)U.S.109.0842.0Series DApr.2022Alternatives(Distribution Platform)U.S100.01,000.0ConsortiumDec.2021Alternatives(Distribution Platform)U.S.50.0-Strategic InvestmentNov.2021Alternatives(Investment Marketplace)Germany75.0-Series CS

81、ources:PitchBook,SNL Financial,M,company filings,industry news reports.20Highlighted Capital Raises:Accessing Alternatives(cont.)DateTargetTarget TypeTarget CountryLead Investor(s)Deal Value(US$M)Pre-Money EVDeal TypeNov.2021Specialty Asset(Investment Marketplace)U.S.$50.0-Series CApr.2021Alternativ

82、es(Investment Marketplace)U.S.17.0-Series AFeb.2021Alternatives(Investment Marketplace)U.S.12.5Series ANov.2020Alternatives(Investment Marketplace)U.S.50.0-Growth EquityOct.2020Real Estate(Distribution Platform)U.S.-Strategic InvestmentSept.2020Luxury Asset(Investment Marketplace)U.S.17.0Series BAug

83、.2020Real Estate(Investment Marketplace)U.S.Undisclosed Investors$7.0Later-Stage VCApr.2020Luxury Asset(Investment Marketplace)U.S.3.0Early-Stage VCMar.2020Alternatives(Distribution Platform)U.S.146.0Growth EquityFeb.2020Private CompanySecondary(Investment Marketplace)U.S.15.0$100.0Series CJan.2020R

84、eal Estate(Investment Marketplace)U.S.50.0525.0Series DDec.2019Private CompanySecondary(Investment Marketplace)U.S.5.0Later-Stage VCNov 2019Real Estate(Investment Marketplace)U.S.12.0228.0Series CSources:PitchBook,SNL Financial,M,company filings,industry news reports.21Wealth Management Market MapMa

85、rket MapAUM RangeLess than$3 billion$3 billion$10 billion$10 billion$25 billionGreater than$25 billionMass AffluentUp to$3 million account sizeHigh Net Worth$3 million$10 million average account size*Companies(Prime Capital,SageView,CAPTRUST)are mapped by the size of their private client average acc

86、ount size;retirement plans are excluded for average account size but not total AUM.Note:Data from companies SEC ADV filings as of August 2022.23Market Map(cont.)AUM Range$10 billion or less$10 billion$30 billionGreater than$30 billionUltra-High Net Worth$10 million$25 million average account size$25

87、 billion or less$25 billion$50 billionGreater than$50 billionMulti-Family OfficeGreater than$25 million average account sizeNote:Data from companies SEC ADV filings as of August 202224Selected Valuation TrendsValuationsAverage Public Company Trading MetricsEV/AUMEV/2022E Adj.EBITDA 2022E P/Adj.Earni

88、ngs Alternative Asset ManagersWealthTech and AdviceDiversified Wealth 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 respecti

89、ve companies within each subcategory.Sources:Public filings,SNL Financial,S&P Capital IQ.Note:Trading multiples based on share price,other market data,and broker consensus future earnings estimates from S&P Capital IQ as of May 1,2023.261.8x2.7x3.8x7.1x8.0 x7.6x14.1x12.7x13.9x11.1x21.3x15.6xTotal En

90、terprise Value to LTM EBITDA Total Enterprise Value to LTM EBITDARelative Change in Total Enterprise Value to LTM EBITDAChange in Total Enterprise Value to LTM EBITDASources:Public filings,SNL Financial,S&P Capital IQ.Notes:Financial data as of most recent available.Market data as of May 1,2023.Indi

91、ces weighted by market capitalization.Independent Wealth Advisors includes BCOR,FOCS,LPLA,and SAMG.Diversified Wealth Advisors includes AMP,RJF,SCHW,and SF.ValuationsHistorical Public Company Trading Levels and Relative Change63928.2x7.0 x270.0 x3.0 x6.0 x9.0 x12.0 x15.0 x18.0 xMay-18Sep-18Jan-19May

92、-19Sep-19Jan-20May-20Sep-20Jan-21May-21Sep-21Jan-22May-22Sep-22Jan-23May-23Independent Wealth AdvisorsDiversified Wealth Advisors02550755May-18Sep-18Jan-19May-19Sep-19Jan-20May-20Sep-20Jan-21May-21Sep-21Jan-22May-22Sep-22Jan-23May-23Independent Wealth AdvisorsDiversified Wealth AdvisorsSe

93、lect Trading ComparablesAdvisorsSources:Public filings,SNL Financial,S&P Capital IQ.Note:Trading multiples based on share price,other market data,and broker consensus future earnings estimates from S&P Capital IQ as of May 1,2023.28As of May 01,2023 (Dollars in millions,except per share data)EV/EV/E

94、BITDAP/Adj.Earnings CompanyAUM2023E Rev.2023E2024E2025E2023E2024E2025EDiversified Wealth AdvisorsThe Charles Schwab CorporationSCHW$51.81NA$94,227(37.8)%(23.7)%n.a.6.0 x12.2x10.0 x8.2x15.6x12.4x9.8xAmeriprise Financial,Inc.AMP302.581,001,26931,589(2.8)12.62.91.95.95.85.59.99.18.3Raymond James Financ

95、ial,Inc.RJF89.76194,40018,993(16.0)(8.8)9.81.66.86.56.49.98.98.6Stifel Financial Corp.SF59.45NA6,3081.9(6.3)n.a.1.45.65.45.39.18.07.4High1.9%12.6%9.8%6.0 x12.2x10.0 x8.2x15.6x12.4x9.8xMean(13.7)(6.6)6.32.77.66.96.311.19.68.5Median(9.4)(7.6)6.31.86.46.16.09.99.08.5Low(37.8)(23.7)2.91.45.65.45.39.18.0

96、7.4Independent Wealth AdvisorsLPL Financial Holdings Inc.LPLA$211.43$620,900$16,563(2.2)%11.0%3.1%1.9x8.8x8.5x7.9x12.6x11.6x10.5xFocus Financial GroupFOCS51.93350,0004,03939.328.61.21.76.85.84.612.610.88.9Avantax,Inc.AVTA11.8538,2821,00927.322.63.11.69.38.4n.a.18.218.0n.a.Alvarium Tiedemann Holdings

97、,Inc.ALTI11.8560,00067327.3n.a.1.1n.a.n.a.n.a.n.a.n.a.n.a.n.a.Silvercrest Asset Management Group Inc.SAMG18.6128,905261(0.9)(13.1)0.92.17.36.76.312.210.69.0High39.3%28.6%3.1%2.1x9.3x8.5x7.9x18.2x18.0 x10.5xMean18.212.31.91.88.07.36.313.912.79.5Median27.316.81.21.88.07.66.312.611.29.0Low(2.2)(13.1)0.

98、91.66.85.84.612.210.68.91-Year Stock Price ReturnTickerClosing Stock PriceAssets Under ManagementMarket Cap.YTD Stock Price ReturnSelect Trading ComparablesAlternative Asset Managers and Wealth Management Tech/ServicesSources:Public filings,SNL Financial,S&P Capital IQ.Note:Trading multiples based o

99、n share price,other market data,and broker consensus future earnings estimates from S&P Capital IQ as of May 1,2023.(1)Reflects total market value of debt and equity,less cash,0.9x the book value of investment portfolio,and 0.9x the book value of carried interest for alternative asset managers.(2)Ma

100、rket cap/ENI for alternative asset managers.29EV/EV/EBITDAP/Adj.Earnings Company AUM2023E Rev.2024E Rev.2025E Rev.2023E2024E2025E2023E2024E2025EWealthTech&AdviceBroadridge Financial Solutions,Inc.BR$144.18$16,9697.5%0.6%n.a.n.a.3.3x3.1x3.0 x15.0 x14.0 x12.7x20.3x18.7x16.6xSS&C Technologies Holdings,

101、Inc.SSNC57.3614,30910.2(11.4)n.a.n.a.3.83.73.59.89.18.612.010.79.6SEI Investments CompanySEIC58.767,8330.84.4n.a.n.a.3.73.53.413.312.111.217.115.113.9Morningstar,Inc.MORN181.837,737(16.0)(28.1)n.a.n.a.4.33.93.620.617.215.334.827.923.6Envestnet,Inc.ENV62.473,3971.2(20.6)n.a.n.a.3.33.02.616.813.310.52

102、9.622.818.4AssetMark Financial Holdings,Inc.AMK30.982,29034.761.454,8704.24.13.83.69.28.47.613.712.611.9High34.7%61.4%$54,8704.2%4.3x3.9x3.6x20.6x17.2x15.3x34.8x27.9x23.6xMean6.41.154,870 4.23.83.53.314.112.411.021.318.015.7Median4.4(5.4)54,870 4.23.73.63.514.112.710.918.716.915.3Low(16.0)(28.1)54,8

103、70 4.23.33.02.69.28.47.612.010.79.6Assets Under Mgmt.TickerClosing Stock PriceMarket Cap.YTD Stock Price Return1-Year Stock Price ReturnAs of May 01,2023(Dollars in millions,except per share data)EV/EV/EBITDA(2)P/DE Company AUM2023E Rev.2024E Rev.2025E Rev.2023E2024E2025E2023E2024E2025EBlackstone In

104、c.BX$88.75$107,436$99,73519.6%(16.1)%$991,29410.1%9.0 x6.8x5.7x15.4x11.5x9.7x16.4x12.4x11.5xKKR&Co.Inc.KKR53.2559,63143,59414.70.6503,8978.77.96.24.713.611.28.318.614.910.7Apollo Global Management,Inc.APO63.7238,15331,874(0.1)22.7547,6475.84.73.93.26.55.74.89.88.57.2EQT ABEQT21.4325,23826,8591.3(23.

105、3)228,43011.810.18.67.716.713.812.319.315.813.7Ares Management CorporationARES85.5725,21025,08425.026.5360,2957.07.35.44.718.814.011.221.515.812.2Partners Group Holding AGPGHN969.3624,95225,3629.7(7.2)135,00018.810.78.98.117.214.212.9n.a.n.a.n.a.The Carlyle Group Inc.CG30.4611,2295,3122.1(17.8)372,6

106、911.41.51.21.13.93.02.69.87.46.5TPG Inc.TPG28.788,8977,5533.410.1135,0345.65.44.44.69.77.67.314.011.68.9High25.0%26.5%$991,29418.8%10.7x8.9x8.1x18.8x14.2x12.9x21.5x15.8x13.7xMean9.5(0.6)409,2868.67.15.75.012.710.18.615.612.310.1Median6.6(3.3)366,4937.87.65.84.714.511.49.016.412.410.7Low(0.1)(23.3)13

107、5,0001.41.51.21.13.93.02.69.87.46.5Large,Diversified Alternative ManagersAssets Under Mgmt.TickerClosing Stock PriceMarket Cap.Intrinsic Enterprise Value(1)YTD Stock Price Return1-Year Stock Price ReturnHoulihan Lokey CapabilitiesHoulihan Lokey is the trusted advisor to more top decision-makers than

108、 any other independent global investment bank.2,500Employees37Locations$6 Billion(1)Market Cap$1.8 Billion(2)Annual Revenue25%Employee-OwnedNoDebtNote:(1)As of April 2023.(2)LTM ended December 31,2022.No.1 Global Advisor to Private Equity Firms 1,000+Sponsors Covered GloballyFinancial Sponsors Cover

109、age 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 of Aggregate Transaction Value CompletedFinancial Restructuring No.1 Global M&A Advisor for Transactions Under$1 Billi

110、on Leading Capital Markets Advisor Raising$100 Billion+in Past Five YearsCorporate Finance1998 to 2022 Global M&A Fairness Advisory RankingsRank AdvisorDeals1Houlihan Lokey1,2322JP Morgan1,0303Duff&Phelps,A Kroll Business938Source:Refinitiv.Announced or completed transactions.2022 Global Distressed

111、Debt&Bankruptcy Restructuring Rankings Rank AdvisorDeals1Houlihan Lokey582PJT Partners303Lazard29Source:Refinitiv.2022 M&A Advisory Rankings Global Transactions Under$1 BillionRank AdvisorDeals1Houlihan Lokey3812Rothschild3693JP Morgan217Source:Refinitiv.Excludes accounting firms and brokers.2022 Mo

112、st Active Global Investment Banks to Private Equity FirmsRank AdvisorDeals1Houlihan Lokey2422Lincoln International1923Deloitte190Source:PitchBook.Leading Independent Advisory Firm31Corporate Finance OverviewHoulihan Lokeys leading Corporate Finance business is built of world-class resourcesCorporate

113、 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 recognition throughout the industry.No.1 M&A advisor for all U.S.transactions.Capital Markets Offers clients access to financing in the priv

114、ate and public capital markets through the issuance of debt,equity,or hybrid securities.Bankers have decades of combined experience in private markets and a track record of successfully executing financings through changing market conditions.Private Funds Group Extensive fundraising and in-house ope

115、rating experience.Maximizes the efficiency and effectiveness of the fundraising process for asset managers.Provides tailored advice on the development and implementation 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 year

116、s.(1)No.1 M&A advisor for all nondepository financial services transactions.(2)LOCAL PRESENCE AND GLOBAL REACH 37 offices in the Americas,Europe,the Middle East,and the Asia-Pacific region.More than 1,340 cross-border deals since 2011.(1)Outstanding track record with international investors,both on

117、sellside and buyside transactions.UNMATCHED PRIVATE EQUITY COVERAGE No.1 most active investment bank to U.S.and global private equity.(3)24 senior officers dedicated to the sponsor community in North America and Europe.Coverage of more than 1,000 private equity firms,250 hedge funds,and 75 family of

118、fices.Dedicated coverage provides proprietary data and knowledge of buyer behaviorSEAMLESS CAPITAL MARKETS EXECUTION Global team of more than 90 professionals.Over the past two years,the group raised approximately$25 billion across more than 250 transactions with more than 110 different financial sp

119、onsors.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 upcoming sellside clientsHoulihan Lokey office locations2022 M&A Advisory Rankings Global Financial Ser

120、vices Transactions Under$1 BillionAdvisorDeals1Houlihan Lokey402Rothschild 393JP Morgan274BofA Securities 265Goldman Sachs 24Source:Refinitiv.Excludes bank transactions.Excludes accounting firms and brokers.(1)As of December 31,2021,according to Refinitiv.(2)Since 2010,$50 million to$600 million dea

121、l value.(3)In 2022,according to PitchBook.32Transaction Tax AdvisoryPrivate Funds GroupFinancial Sponsor CoverageFund and Transaction OpinionsFinancial and Valuation AdvisorySecondary and Fund AdvisoryGP Advisory Largest financial sponsors group focused on mid-and large-cap funds 24 senior officers

122、in North America and Europe dedicated to coverage of more than 1,000 sponsorsTransaction Tax Advisory ServicesFinancial Sponsor CoverageHoulihan Lokey is uniquely positioned to serve as a trusted advisor,given its comprehensive capabilities and ability to offer an integrated solution and team to add

123、ress the most important strategic decisions of general partners(GPs).Comprehensive advisory to asset managers on GP minority and majority stake sales,acquisitions,seed investments,joint ventures,product development,succession planning,and establishment of private and permanent capital vehicle Facili

124、tate capital solutions to fund increasing GP co-investments,equitize the next generation,and enable transitioning shareholders to monetize equity interestGP Advisory Dedicated Houlihan Lokey tax advisory team Efficient tax structure can preserve or create value in GP stake transactions Active and de

125、dicated team focused on providing liquidity solutions Unique knowledge of secondary investor preferences and behavior through unmatched relationships and deal flow Valuation of existing structures under GP management and evaluation of strategic options can add to a processs value creation potentialS

126、econdary and Fund AdvisoryHoulihan Lokey Solutions for the Life Cycle of Managers and Funds Valuation and fairness opinions to sponsors across a wide range of affiliate transactions including fund transfer,fund recapitalizations,and other portfolio company transactions Fairness opinions to enhance v

127、alue and security to selling partners and shareholdersTransaction and Fund Opinions Deep portfolio,private company,security,loan,and derivatives valuation experience Provider of recurring,asset-by-asset valuations to three of the largest investors in the spaceFinancial and Valuation AdvisoryPrivate

128、Funds Group(PFG)Dedicated team of 30 individuals globally,combining the fundraising experience of a leading institutional agent with unique in-house operating and investor relations experience from market-leading firms Can provide guidance on timing of stake sales,LP communication,and other strategi

129、c considerations as they relate to LP relations33 Minority investments in a variety of wealth and asset managers and general partnerships across asset classes.Includes both financial and strategic buyers.Houlihan Lokey Wealth and Asset ManagementOverview of M&A and Capital Market SolutionsHoulihan L

130、okey 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 ExperienceSelect Advisory Areas Full se

131、llside 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 companies.Secured and unsecured de

132、bt,mezzanine debt,structured preferred,and common equity.Tombstones included herein represent transactions closed from 2014 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 ven

133、ture company.Mergers and AcquisitionsCapital Markets Related$500,000,000 Senior Secured Term Loan with Warrants$1,650,000,000 Asset-Based Term FacilityRecapitalizationFinancial Advisor&Exclusive Placement Agenta portfolio company ofhas received financing from funds managed byCapital RaisingSeries B

134、Cumulative Redeemable Preferred Stock with Warrants Recapitalization$325,000,000Exclusive Placement Agenthas repurchased their minority seed interest fromBuyside Advisorhas sold minority equity stakes toTPG Sixth Street PartnersandDyalCapital partnersExclusive SellsideAdvisorhas sold a minority equi

135、ty GP participation(a“GP stake”)toSellside AdvisorSenior Secured Term Loan RecapitalizationExclusive Placement Agenthas acquiredBuyside Advisorhas sold its interests in the MCC Senior Loan Strategy JV Portfolio to a private fund managed bySellside Advisorhas sold a minority stake toa portfolio compa

136、ny ofSellsideAdvisor*$100,000,000 Senior Secured Term Loan Exclusive Placement AgentSeries A Senior Secured NotesGrowth Capital$50,000,000Exclusive Financial Advisor&Placement Agenthas merged withSpecial Committee AdvisorProject HeliosSolar Development LendingABL RevolverDividend Recapitalization$10

137、0,000,000Exclusive Placement Agenthas completed a financing consisting of$24,000,000Series D Convertible Preferred StockPlacement AgentConvertible Preferred Stock$47,500,000Placement Agenthas acquiredBuyside AdvisorAn affiliate of has acquiredBuyside Advisorhas merged withBuyside Advisorhas sold a m

138、inority equity GP stake toSellside 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 Agenthas sold a minority equity GP Stake to Sellside Advisorsold its entire Investment Portfolio fo

139、r$793 million to funds advised bySellside Advisorhas acquiredAmerica First Capital Associates Limited Partnership TwoThe General Partner ofBuyside Advisor$19.5 billion AUMhas been acquired bySellside Advisor34Disclaimer 2023 Houlihan Lokey.All rights reserved.This material may not be reproduced in a

140、ny 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,exempt)entities:in(i)the United States:Houlihan Loke

141、y Capital,Inc.,and Houlihan Lokey Advisors,LLC,each an SEC-registered broker-dealer and member of FINRA(www.finra.org)and SIPC(www.sipc.org)(investment banking services);(ii)Europe:Houlihan Lokey Advisory Limited,Houlihan Lokey EMEA,LLP,Houlihan Lokey(Corporate Finance)Limited,and Houlihan Lokey UK

142、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 Financial Centre(Dubai):

143、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 Lokey(Singapore)Private

144、 Limited and Houlihan Lokey Advisers Singapore Private Limited,each an“exempt corporate finance adviser”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 and Futures Commission

145、 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 adviser with the Securities and Exchange Board of India(registration number INA000001217);and(vii)Australia:Houlihan Lokey(Australia)Pty

146、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,Singapore,Hong Kong,Indi

147、a,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 clients,are NOT the

148、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 provided within this presentation.The material presented r

149、eflects information known to the authors at the time this presentation was written,and this information is subject to change.Any forward-looking information and statements contained herein are subject to various risks and uncertainties,many of which are difficult to predict,that could cause actual r

150、esults and developments to differ materially from those expressed in,or implied or projected by,the forward-looking information and statements.In addition,past performance should not be taken as an indication or guarantee of future performance and information contained herein may be subject to varia

151、tion as a result of currency fluctuations.Houlihan Lokey makes no representations or warranties,expressed or implied,regarding the accuracy of this material.The views expressed in this material accurately reflect the personal views of the authors regarding the subject securities and issuers and do n

152、ot necessarily coincide with 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 presentation does not constitute advice or a recommendation,offer,or solicitation with respect to the sec

153、urities of any company discussed 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 of this presentation receive compensation that is affected by overall firm profitability.35Corporate Finance Financial RestructuringFinancial and Valuation AdvisoryHL.com