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ECHELON’s RIA M&A Deal Report U.S. Wealth Management 3Q21Key Trends and Highlights Quarterly Deal Volume Hits New Record High asProspective Tax Code Change Looms: There were 78deals announced in 3Q21 – a new all-time high, beatingthe previous quarterly record set in 1Q21 of 76. Largest Platforms Expand M&A Dominance: Largestrategic acquirers, many of which are backed byPrivate Equity, continued their status of the most activedealmakers in the wealth management industry. U.S. Private Equity and Strategics Pivot Attention toU.K. as North American M&A Competition Heats Up:Spurred by opportunity as well as increasingcompetition, strategic buyers have ramped updealmaking activity in the U.K. They have been followedby prominent U.S. Private Equity firms also looking toestablish a presence in the region. Key WealthTECH Trends Proliferate: Insurers bolt-onTAMP capabilities, Direct Indexing remains investingtech's hot trend, and the democratization of PrivateMarket Investing continues to attract investorattention.7826208Total 3Q21TransactionsAnnouncedDeals inSeptember2021Total DealsYTD in 2021Note: Totals above exclude WealthTECH Deals unless an RIA is the Buyer or Seller.Executive Overview: After a record setting start to the year,M&A activity in the wealth management industry once againreached unprecedented levels in 3Q21. ECHELONexpects 2021 to outpace the total 2020 deal count by asignificant margin as strong secular trends (consolidation,competition, succession planning) and supportive capitalmarkets (cheap debt, heightened corporate cash balances,significant Private Equity dry powder) continue to fuelrecord-setting dealmaking activity. Transitory trends relatedto potential changes in tax rates has added fuel to the M&Afrenzy.U.S. Private Equity Spotlight: Private Equity interest in thewealth management sector has reached all-time levels.There were 12 direct transactions in 3Q21 (focused onbuilding or investing in a wealth management M&Aplatform), such as TA Associates investment in 7.5 BNAUM Caprock Group, Lightyear's investment in UK basedWren Stirling, and Onex's investment in WealthEnhancement Group. The majority of deal activity involvingPrivate Equity capital has come via their portfoliocompanies, such as M&A powerhouses Mariner Wealth(backed by Leonard Green) and Mercer Advisors (backed byOak Hill). This buyer group, which we largely categorize asStrategics or Consolidators accounted for 58 transactionsduring the quarter.Buyer Composition & Competition: Strategic Acquirers &Consolidators are outpacing even the most grandioseof expectations, with robust acquisition activity thatcontinues in 3Q21. The category is dominating total M&Aactivity, accounting for over 70% of all transactions thisquarter and over 50% of all transactions in 2021 YTD.3rd Quarter 2021 ECHELON Select Deal Announcementshas completed its sale tohas completed its sale tohas completed its sale toECHELON served as the exclusive M&A advisorto Sawtooth and provided:ECHELON served as the exclusive M&A advisorto Oakwood and provided:ECHELON served as the exclusive M&A advisorto Pinnacle and provided:Sell-Side Investment BankingSell-Side Investment BankingSell-Side Investment BankingECHELON Partners RIA M&A Deal Report www.ECHELON-partners.com1
RIA M&A Deal Report – Third Quarter 2021Exhibit 1. Q3 Wealth Management M&A Deal Volume Hits New Record Levels69473828 283147 45273533 3152 49 5346 48 43 44 4946417876555435Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q32015201620172018201920202021Source: Company Reports, SEC IARD, ECHELON Partners AnalysisExhibit 1 highlights that 2021 is projected to be a record-breaking year with a forecasted annual deal count of 287, alevel 10.4% higher than the annual total projected at the end of 2Q21. The data also illustrates that the decrease indeal count observed in 2Q21 was not representative of the ongoing trend. 3Q21’s deal total was the highest quarterlytotal observed to date, is 44.4% higher than 2Q21’s deal count, and is 41.8% higher than 3Q20’s count. The significantjump in deal count reaffirms our gauge of market sentiment and highlights that many independent wealth managersare still seeking to transact prior to year-end. We view this as largely being driven by strong interest from strategicacquirers and, in the case of larger firms, deep-pocketed capital sponsors and Private Equity investors.9th40%Increase inProjected DealVolume Relative to202082287Straight Year ofProjected RecordBreaking M&AActivity in the SectorMore Deals Expectedin 2021 Relative to2020’s TotalDealsProjectedin 2021EExhibits 2 & 3. Wealth Management Transactions Year-Over-Year (Q3 and Annual 616818120172018203205201920202021ESource: Company Reports, SEC IARD, ECHELON Partners AnalysisECHELON Partners RIA M&A Deal Report www.ECHELON-partners.com2
RIA M&A Deal Report – Third Quarter 2021As illustrated in Exhibit 3, if the M&A activity observed through the first three quarters of the year continues, 2021will see 287 transactions announced, up from ECHELON’s 2Q21 forecast of 260 annual deals. That 10.4% increasewould represent another annual M&A record and significant year-over-year increase .44.4%Quarterly Increasefrom 2Q21 to 3Q21Largest SingleQuarter Deal CountIncrease SinceReport’s Inception15.8%CAGR from2016 to 2021E149More Deals Thanin 2016(Projected)Exhibit 4. Average AUM per Deal Excluding 20 BN AUM2,324As shown in Exhibit 4, average AUM per transactioncontinues to increase. There were 51 deals involvingover 1 BN in AUM announced during 3Q21. This was a1,750giant leap quarterly for total deals this size relative to the1,477first two quarters of 2021, and significantly higher than1,269the quarterly levels that were observed prior to this year.1,0461,0103Q21’s average AUM per deal of over 2.3 BN highlightsthe strong supply of available dealmaking capital fromsophisticated buyers that is allowing demand frombuyers to exceed the supply of firms looking to sell, evenwith the significant increase in the number of sellers thatECHELON has observed in the last six to twelve months.20162017201820192020 2021 YTDThe growth in average AUM per deal can also beSource: Company Reports, SEC IARD, ECHELON Partners Analysisattributed to increases from investment performance asmajor indices continue to perform well despite someSet forgrowing concerns about a potentially cooling economy.Overall, we expect 2021 to be another year of recordaverage AUM transacted due to robust equity markets,Increaseinnew avenues for organic growth, and feverish interestCompound Annual GrowthAverageAUMfrom current and emerging buyers.Rate of Transaction AUM12.6%32.8%from 2016-2021 YTDTransacted YOYExhibit 5. 1 BN Wealth Management Source: Company Reports, SEC IARD, ECHELON Partners AnalysisBuilding on the analysis above that notes the expansionin average AUM per transaction, Exhibit 5 shows thatthe increase in AUM per deal is not simply driven by asmall number of large transactions. The number of 1BN transactions is set to rise, exceeding 2020’s total byalmost 100%. The 1 BN plus AUM sector continues tobe the most competitive part of the market as bothstrategic and financial acquirers compete for platformswith scale and large pools of talent.ECHELON Partners RIA M&A Deal Report www.ECHELON-partners.com3
RIA M&A Deal Report – Third Quarter 2021Set for55.9%Compound Annual GrowthRate of 1 BN Deals from2017-2021E13674.4%Projected Total Numberof 1 BN DealsExpected in 2021Increase in 1 BN DealsTransacted Over 2020Exhibit 6. Top 10 Transactions in Q3 2021 – Excluding Direct Private Equity TransactionsSeller AUM( MM)DateSellerBuyerBuyer Type7/2/2021MJM401KSageView Advisory GroupRIA9/1/2021Ancora HoldingsFocus Financial PartnersStrategic or Consolidator9,4009/30/2021QCI Asset ManagementWealth Enhancement Group Strategic or Consolidator5,2009/14/2021Portola PartnersCI Financial CorpStrategic or Consolidator5,2007/20/2021AdvicePeriodMariner Wealth AdvisorsStrategic or Consolidator5,1008/4/2021ProCourse Fiduciary AdvisorsMJ InsuranceOther4,9469/28/2021Berman Capital AdvisorsCresset Asset ManagementStrategic or Consolidator4,7009/9/2021Carroll Financial AssociatesWealth Enhancement Group Strategic or Consolidator4,7007/8/2021Trusted Capital GroupHub International LimitedStrategic or Consolidator4,6007/8/2021Exencial Wealth AdvisorsFirst United BankStrategic or Consolidator4,00017,000Source: Company Reports, SEC IARD, ECHELON Partners AnalysisExhibit 6 highlights the quarter’s top deals and again emphasizes that there is a pervasive theme of consolidationwhich is continuing to drive the wealth management industry’s record level of transaction activity. Eight of 3Q21’s topten transactions were announced by firms categorized as Strategic Acquirers or Consolidators. Perhaps most notableof these was Wealth Enhancement Group who is tied for Focus Financial for the most deals of the quarter yet is theonly buyer to appear in the list of 3Q21’s top ten transactions twice. This is a good example of the ability of theselarge dealmakers to simultaneously participate in and ultimately win multiple M&A efforts and successfully managethe due diligence and integration processes that come with each transaction.The largest deal this quarter, by AUM transacted, was SageView Advisory Group’s acquisition of Arizona-basedretirement consulting firm, MJM401K. The deal involved nearly twice the AUM as the next largest transaction and isanother example of the strong M&A activity and high levels of buyer interest making their way into the retirementplanning space.ECHELON Partners RIA M&A Deal Report www.ECHELON-partners.com4
RIA M&A Deal Report – Third Quarter 2021Exhibit 7. Top Direct Private Equity TransactionsSeller AUM ( MM)% Acquired100,0008%Onex20,000 50%Carson Group HoldingsBain Capital17,000N/A7/26/2021Concurrent AdvisorsMerchant Investment Management12,200 50%8/16/2021MAI Capital ManagementGalway Holdings (Carlyle Group, OakHill Capital, Harvest Partners)8,600 50%9/28/2012Caprock GroupTA Associates7,500 100%7/21/2021Wren SterlingLightyear Capital6,325N/A7/24/2021Gerber Taylor Capital AdvisorsEmigrant Partners6,300 50%9/15/2021Douglass Winthrop AdvisorsKudu Investment Management4,800 50%9/1/2021Pure Financial AdvisorsLee Equity3,60040%7/21/2021Verdence Capital AdvisorsEmigrant Partners3,001 50%DateSellerBuyer7/14/2021AIG Life and RetirementBlackstone8/25/2021Wealth Enhancement Group7/14/2021Source: Company Reports, SEC IARD, ECHELON Partners AnalysisExhibit 7 highlights the quarter’s largest direct investments by Private Equity acquirers and again emphasizes thatthese buyers’ interest remains a leading contributor toward the wealth management industry’s largest transactions.One of the most significant transactions by a Private Equity firm this quarter was Onex’s investment in WealthEnhancement Group. The Minneapolis based serial acquirer has grown at a blistering pace under private equityownership, with AUM expanding from 10 BN in 2019 to, as we currently write this report, 52.4 BN. As previouslynoted, Wealth Enhancement Group has been one of the most active strategic acquirers in the space so far this yearand the capital infusion from Onex will recapitalize the M&A warchest and provide them the funds necessary tocontinue their rapid buying streak.Another direct Private Equity investment from 3Q21 that is worth noting was Lightyear Capital’s strategic partnershipwith international RIA and U.K.-based wealth management firm Wren Sterling Financial Planning Limited. This dealrepresents an important macro-trend that has developed throughout the year: Domestic Private Equity firms turningtheir attention oversees as the U.S. M&A market becomes increasingly competitive for large scale platforms that cansupport M&A. In 2021, the U.K. has seen an especially large increase in deal activity and general interest from U.S.based financial and strategic acquirers.ECHELON Partners RIA M&A Deal Report www.ECHELON-partners.com5
RIA M&A Deal Report – Third Quarter 2021Exhibit 8. Top 10 Private Equity Backed TransactionsSeller FirmTypeBuyerPrivate EquityBackerSellerAUM( MM)Aquiline Capital17,000Stone PointLee EquityTA Associates,OnexLeonard Green &PartnersTA Associates,OnexHellman 219/14/2021Ancora HoldingsSawtooth SolutionsRetirementConsultantRIATAMP9/30/2021QCI Asset ll Financial AssociatesRIA7/8/2021Trusted Capital GroupRIA9/14/2021NorthCoast AssetManagementRIAFocus Financial Partners Stone Point3,0009/23/2021FGC AdvisorsRIAMariner WealthAdvisorsLeonard Green &Partners2,7007/8/2021Nachman Norwood & ParrottRIAWealth ManagementCAPTRUSTGTCR2,100SageView AdvisoryGroupFocus Financial PartnersSimplicity GroupWealth EnhancementGroupMariner WealthAdvisorsWealth EnhancementGroupHub InternationalLimited5,2005,1004,7004,600Source: Company Reports, SEC IARD, ECHELON Partners AnalysisExhibit 8 highlights the quarter’s largest deals completed by Private Equity sponsored-firms. The majority of Buyerslisted rely on financing (debt or equity) and deal support from their M&A savvy Private Equity owners to execute ontheir inorganic strategy. The exhibit below presents the most active sponsors as measured by the deal count of eachrespective portfolio company.Exhibit 9. 3Q21 Private Equity Backed Transactions By Capital Sponsor117763333Note: Onex is representative of Wealth Enhancement Group quarterly activity.ECHELON Partners RIA M&A Deal Report www.ECHELON-partners.com6
RIA M&A Deal Report – Third Quarter 2021Exhibit 10. Percentage Breakdown of RIA Acquirers by Firm TypeRIA21%15%7%Strategic & 40%20%201920202021E72%of 3Q21 TransactionsInvolved StrategicAcquirersStrategic Acquirers &Consolidators continue todominate dealmaking,announcing 56 deals, or72% of the 3Q21’s total.Source: Company Reports, SEC IARD, ECHELON Partners Analysis1Other: Private Equity Firms, Insurance Firms, Independent Broker Dealers, etc.Exhibit 10 reveals that the RIA-to-RIA transactions thatdrove deal activity in 2020 continue to declinesignificantly relative to the number of deals announcedby Strategic Acquirers and Consolidators. So far in 2021,RIAs have announced only 20% of all deals, marking byfar the lowest percent of total deals the category hasgenerated over the observable period. RIA’s overalldecline in relative deal volume is at least partially due tothe rapidly increased presence of prominent strategicacquirers and their Private Equity backers that nowdominate the market. RIAs also continue to engage insmaller acquisitions, averaging 670 MM in AUMtransacted per deal so far in 2021.Strategic Buyers or Consolidators are by far the mostactive type of acquirer so far in 2021, replicating a trendthat was observed from 2015-2018. Since the start of thisyear, these buyers have announced more than 50% of alltransactions and the average AUM across these deals hasequaled 1.9 BN, nearly 3x the size of the average dealannounced by a firm in the RIA category, though stilllesser than the average size of the deals announced byBanks or those in the Other category (Private Equityfirms, Asset Managers, Insurance Companies,Independent Broker Dealers, etc.).Banks have historically been the least active type ofacquirer in terms of deal activity, and this has becomeincreasingly true as 2021 has progressed, due in largepart to the high competition from the large strategicacquirers and deep-pocketed Private Equity firms whotend to be more aggressive than banks in their M&Aefforts.Other: This category has historically consisted primarilyof Private Equity investors and asset managers. Now, aswealth management deals continue to attract new typesof buyers, the category includes growing numbers ofinsurance companies and other large diversified financialservices firms.The Other category is expected to continue to expand itsdirect influence over wealth management industry M&Aactivity in 2021 and beyond. We expect activity levelsfrom these buyer types to reach all-time highs for thecategory and overtake that of pureplay RIA-to-RIAtransactions. Acquirers in the Other category have alsotraditionally been involved in many of the largest deals.This remains true in 2021 with the category beingresponsible for 7 of the top 10 deals in both 3Q21 and2021 YTD.ECHELON Partners RIA M&A Deal Report www.ECHELON-partners.com7
RIA M&A Deal Report – Third Quarter 2021Exhibit 11. 2021 Multi-Firm Buyers: Acquisition Activity Through Q3 & Most Active %of 2021 deals have beenannounced by companies thathave acquired 2 firms this yearHeadquartersBuyer Type# of DealsYTDFocus Financial Partners New YorkStrategic/Consolidator13Wealth ercer AdvisorsNew YorkStrategic/Consolidator11Beacon Pointe AdvisorsNewport Beach nsolidator8CI Financial Corp.TorontoStrategic/Consolidator7Hub ic/Consolidator6Mariner Wealth Advisors Leawood1. Deals are recorded and tracked on an “as announced basis” and do not consider the timing of internal negotiations.2. Acquisitions made through platform firms are not directly counted in the above totals (e.g. Focus and Connectus).Experienced Acquirers – those who have engaged in at least two mergers or acquisitions since 2016 – have assumedthe primary role atop the industry’s overall M&A activity. These firms typically have a business model centered aroundscale and rely heavily on M&A activity to drive growth and expansion. They are often backed by Private Equity capitalthough two firms on the list above, Focus Financial Partners and CI Financial Corporation, are publicly traded.As Exhibit 11 shows, 56 of the 78 deals announced in the third quarter involved an acquirer who had completed atleast two acquisitions since 2016. This is another data point that highlights that the ongoing industry-wideconsolidation is being driven by a small number of incredibly active firms who aim to use M&A as a primary source ofgrowth while also capitalizing on the significant efficiencies that come with this increased scale.Exhibit 12. U.K. RIA M&A Heats Up as U.S. Private Equity & Strategics Seek Opportunity OverseasSeller AUM( MM)6,50037,900SellerBuyerBuyer TypeSaunderson HouseCharles StanleyWren SterlingFinancial PlanningRathbone BrothersRaymond JamesRIABankLightyear CapitalPrivate Equity6,325AFH Financial GroupFlexpoint FordPrivate Equity6,500Private Equity10,600Private Equity94,900Fairstone FinancialCanaccord GenuityWatterson FinancialPlanningAdam & Co.TA Associates/SynovaHPS InvestmentPartnersConnectus WealthAdvisors (Focus)Canaccord GenuityStrategic orConsolidatorOtherBold U.S. Buyer and included in Deal Count.Source: Company Reports, SEC IARD, ECHELON Partners Analysis.ECHELON Partners RIA M&A Deal Report www.ECHELON-partners.comN/A2,369Exhibit 12 depicts the previouslyreferenced trend of key industryinvestors broadening their horizonsand increasing their internationalacquisition activity as competitionand high valuations in the NorthAmerican market spurs explorationinto alternative M&A regions. PrivateEquity firms are leading this trend,but they are certainly not alone asbanks, RIAs and diversified financialservices companies join them in thesearch for targets overseas. Asconsolidation continues in thedomestic market, ECHELON expectsthis trend to continue well into nextyear and beyond.8
RIA M&A Deal Report – Third Quarter 2021Exhibit 13. Top WealthTECH Deals of 3Q21TargetCanvasJust InvestWealth ManagementLLCSawtooth SolutionsForeside FinancialAxio FinancialRiskalyzeLessonlyBettermentiCapital NetworkDriveWealthForge GlobalVanillaVestwellBuyer (or Investor)Franklin TempletonVanguardIntegrity MarketingGroupSimplicity GroupGenstariCapitalHgSeismicTreasuryTemasek, Owl Rock,MSD Partners, GolubInsight PartnersMotive Capital GroupVenrockWells Fargo Ventures,Fin Venture & OthersWealthTECH TrendProliferation of Direct IndexingProliferation of Direct IndexingIndustryModeling & ExecutionModeling & ExecutionCross-Selling Wealth with InsuranceTAMPCross-Selling Wealth with InsuranceCompliance TechnificationStructured Products & Wealth MgmtRisk Management IntegrationInvestor EducationRobo Advisor SolutionsTAMPOperations & ComplianceModeling & ExecutionOperations & ComplianceCRM & MarketingModeling & ExecutionPrivate Market DemocratizationModeling & ExecutionInvesting AccessibilityPrivate Market DemocratizationAutomated Estate PlanningModeling & ExecutionModeling & ExecutionModeling & ExecutionInvesting AccessibilityModeling & ExecutionSource: Company Reports, SEC IARD, ECHELON Partners AnalysisThe increasing pace of technological innovation and adoption by the wealth management industry has been a topic ofECHELON’s annual RIA M&A Deal Report since its inception. Exhibit 13 summarizes the most important transactions inWealthTECH during 3Q21 and groups them based on three emerging trends in the sector. Financial advisors andinvestors continue to demand improved customer service and increased technology utilization as they navigate capitalmarkets and make key financial decisions. The exhibit above demonstrates the strategic M&A activity made within thespace by participants positioning their firm’s technology and service offerings for the future.Exhibit 14. Top TAMP Deals of 2021AcquiresAcquiresAcquiresSeptember 14, 2021September 28, 2021January 25, 2021Above we highlight a key trend, the insurance sector building wealth management platforms and human capital viathe acquisition of Turnkey Asset Management Platforms or “TAMPs”. Not only do TAMP acquisitions increase potentialdistribution channels for Insurance companies but they also provide the ability to offer wealth services to registeredagents who are interested in becoming IARs (Investment Advisory Representatives). There have been threetransactions that speak to this trend in 2021, with the largest (as measured by AUM) being Simplicity Group’sacquisition of Sawtooth (in which ECHELON Partners was proud to be exclusive M&A advisor to Sawtooth).ECHELON Partners RIA M&A Deal Report www.ECHELON-partners.com9
RIA M&A Deal Report – Third Quarter 2021ECHELON Deal Announcement: Sawtooth Sale to SimplicityInvestment Banking Role:has completed its sale toECHELON served as the exclusive M&A advisorto Sawtooth and provided:Sell-Side Investment BankingSawtooth Solutions (“Sawtooth”)completes sale to Simplicity Group(“Simplicity”)Sawtooth has successfully completed a transactionwith Simplicity Group, a portfolio company of LeeEquity.Date Announced:September 14, 2021ECHELON Partners served as the exclusive financial advisor toSawtooth, providing M&A sell-side advisory services. ECHELONis proud to have served as the exclusive sell-side advisor toSawtooth Solutions in this transaction. ECHELON successfullyfacilitated this sale, thanks in large part to our TAMP industryexpertise and through the ability of the deal team, led byECHELON Managing Director and resident TAMP industry expertMike Wunderli, to leverage its unparalleled understanding of therapidly evolving TAMP ecosystem. ECHELON’s prior dealexperience in the TAMP space and deep network of establishedbuyers allowed for efficient execution and facilitation of acompetitive process which culminated in a highly successful andaccretive transaction with Simplicity Group.Client Background:Sawtooth Solutions is a leading Turnkey Asset ManagementPlatform ("TAMP"), which offers a flexible, comprehensive UMA(Unified Managed Accounts) platform built to fit the uniqueneeds of financial advisors and wealth-management firms. Thefirm is dedicated to providing high level investment solutionsand an all-inclusive technology platform to enable advisors’success. The company was built to help advisors navigate thewealth management landscape and build successful, scalablepractices.Successful Outcome:The strategic partnership of Simplicity and Sawtooth bringstogether two firms each backed by strong tenure andadvantageous positioning across a multitude of operationalservice sectors in the wealth management space.INVESTMENT BANKERS Ι MANAGEMENT CONSULTANTS Ι VALUATION EXPERTSTo the Wealth and Investment Management IndustriesECHELON Partners RIA M&A Deal Report www.ECHELON-partners.com10
RIA M&A Deal Report – Third Quarter 2021ECHELON Deal Announcement: The Pinnacle Group Sale to Mariner Wealth AdvisorsInvestment Banking Role:has completed its sale toECHELON served as the exclusive M&A advisorto Pinnacle and provided:Sell-Side Investment BankingThe Pinnacle Group completes saleto Mariner Wealth AdvisorsThe Pinnacle Group has successfully completed atransaction with Mariner Wealth Advisors, a portfoliocompany of Leonard Green.Deal Size: 600 MM AUMDate Announced:September 9, 2021ECHELON Partners served as the exclusive financial advisor toThe Pinnacle Group, providing sell-side investment bankingadvisory services. The ECHELON team's network of strategicpartners across the RIA competitive landscape in addition to theteam's battle-tested RIA M&A deal experience servedparamount throughout the engagement process. ECHELONworked hand-in-hand with the TPG team to help facilitate acompetitive process which ultimately culminated in a perfect fitfor TPG now a part of the Mariner Wealth Advisors network.ECHELON’s services included valuation, buyer outreach, clientmarketing, deal process management, offer analysis, successionplanning, and negotiating of deal terms.Client Background:The Pinnacle Group, a Cincinnati-based wealth managementplatform with specialty services in retirement planning, was firstestablished in 1994 and has since accumulated over 600 MillionAssets Under Management.Successful Outcome:With a significant stake of its AUM in retirement plans, this dealwill contribute to the further growth of Mariner WealthAdvisors’ own retirement plan solutions, a platform designed toaid businesses in managing their employer-sponsoredretirement plans for employees. This is an incredible opportunityfor The Pinnacle Group to continue their legacy of helping clientsbuild a successful financial future and provide an attractivecareer path that offers new opportunities for growth anddevelopment to the Pinnacle team.INVESTMENT BANKERS Ι MANAGEMENT CONSULTANTS Ι VALUATION EXPERTSTo the Wealth and Investment Management IndustriesECHELON Partners RIA M&A Deal Report www.ECHELON-partners.com11
RIA M&A Deal Report – Third Quarter 2021Deal Announcement: Oakwood Capital Management Sale to Wealth Enhancement GroupInvestment Banking Role:has completed its sale toECHELON served as the exclusive M&A advisorto Oakwood and provided:Sell-Side Investment BankingOakwood Capital Managementcompletes sale to WealthEnhancement GroupOakwood Capital Management has successfullycompleted a transaction with Wealth EnhancementGroup, a portfolio company of TA Associates.Deal Size: 1.0 BN AUMDate Announced:July 8, 2021ECHELON Partners served as the exclusive financial advisor toOakwood Capital Management, providing M&A sell-sideadvisory services. The ECHELON team’s unparalleledunderstanding of the RIA environment, financial institutionsindustry expertise and deep network of established connectionsproved pivotal while working with Oakwood’s management tohelp facilitate a competitive process and ultimately ensure aseamless transaction with Wealth Enhancement Group, aportfolio company of TA Associates. ECHELON’s services includedvaluation, buyer outreach, client marketing, deal processmanagement, offer analysis, succession planning, negotiating ofdeal terms, and initial integration with WEG.Client Background:Oakwood, a Los Angeles, CA based wealth management group isa wealth management firm providing retirement planning, assetmanagement, investment advisory, tax planning and otherfinancial advisory services to high-net-worth individuals.Successful Outcome:The strategic partnership of WEG and Oakwood is a seamless fit,joining two firms each with a strong and successful tenure in aunion that will enable future growth and continued excellencelong into the future. The junction of the two firms will enhancethe pre-existing quality of services while enabling the newcombined entity to expand its reach and its access to resourcesto be utilized in service of its clients.INVESTMENT BANKERS Ι MANAGEMENT CONSULTANTS Ι VALUATION EXPERTSTo the Wealth and Investment Management IndustriesECHELON Partners RIA M&A Deal Report www.ECHELON-partners.com12
ECHELON Partners: The Industry Leader in M&AAbout ECHELON PartnersECHELON Partners is a Los Angeles-based investment bank and consulting firm focused exclusively on the Wealthand Investment Management industries. ECHELON specializes in supporting several influential client groups:RIAsBrokerDealersHybrid RIAsWealthTECHFirmsTAMPsAssetManagersHow ECHELON Can HelpProvide Transaction Assistance(M&A, Sales, Capital Raising)Design Equity and Compensation StructureConduct a ValuationEquity Recycling & ManagementContinuity & Succession PlanningAdvise on the Buyout of a PartnerINVESTMENT BANKING#1#1 FINRA-registered investmentbank serving wealth managersover the past 20 yearsMANAGEMENT CONSULTINGStrategy consultants who have advised onover 500 wealth and asset managementdealsVALUATIONS#1 in valuations for wealth managerswith more than 2 MM in revenueor 200 MM in AUM20 Years of M&ARelated AnalysisandNetworking2,000 AcquisitionTargets Evaluatedfor BuyersTRACK RECORDA three-time winner ofWealthManagement.com’s Most InnovativeIndustry Investment Bank AwardECHELON Partners RIA M&A Deal Report www.ECHELON-
RIA M&A Deal Report -Third Quarter 2021 ECHELON Partners RIA M&A Deal Report www.ECHELON-partners.com 4 Exhibit 6. Top 10 Transactions in Q3 2021 -Excluding Direct Private Equity Transactions Date Seller Buyer Buyer Type Seller AUM ( MM) 7/2/2021 MJM401K SageView Advisory Group RIA 17,000
