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CFIUS Filing Clearance: Huatai Securities, AssetMark Financial Holdings, and Global Financial Private Capital

On August 11, 2018, AssetMark Financial Holdings, Inc., “a leading provider of extensive wealth management and technology solutions that power independent financial advisers and their clients,” entered into a unit purchase agreement to acquire Global Financial Private Capital, subject to “approval from the Committee of Foreign Investment in the United States.” (AssetMark Financial Holdings, Inc., Form S-1, Apr. 23, 2019, SEC Filing.) In a SEC filing in April 2019, AssetMark Financial Holdings stated that the closing conditions had not been met as of March 11, 2019. (AssetMark Financial Holdings, Inc., Form S-1, Apr. 23, 2019, SEC Filing.)  “On April 16, 2019, the Company closed the acquisition and paid a final purchase price of [$35.9 million] . . .”  (AssetMark Financial Holdings, Inc., Form S-1, May 31, 2019, SEC Filing.)  AssetMark Financial Holdings, Inc., disclosed that it closed on its “acquisition of Global Financial Private Capital following CFIUS clearance.”  (AssetMark Financial Holdings, Inc., Form S-1, July 8, 2019, SEC Filing.)    “In April 2016, Huatai Securities Co., Ltd. (“HTSC”), a Chinese securities group with brokerage and investment services, . . . became the ultimate parent company of [AssetMark] through its subsidiary Huatai International Investment Holdings Limited, a company organized under the laws of the Cayman Islands . . .”  (AssetMark Financial Holdings, Inc., Form S-1, July 8, 2019, SEC Filing.)  Currently, Huatai Securities indirectly holds 98.6% of the voting interest, however, following a planned public offering, it will indirectly hold up to 73.3%.  (See id.)

Status:  Clearance

Acquirer:  Huatai Securities Co., Ltd. (China); AssetMark Financial Holdings, Inc., (US)

Acquired:  Global Financial Private Capital, LLC (US)

Value:  US$35.9 Million

Industry:  Financial Services


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