China Securities Regulatory Commission manages the IPO offered by firms such as Huatai Securities, which raised $4.5 billion last year. (Photo : Reuters)
Huatai Securities Co. Ltd. is planning to acquire AssetMark Inc., a U.S. asset management software maker, in an $800-million deal, which could be the biggest Chinese investment in the U.S. financial district since Anbang Insurance Group Co. signed in November a $1.6-billion deal to acquire Fidelity & Guaranty Life, China Daily reported.
As China's largest brokerage by trading volume, Huatai has raised $4.5 billion after pricing its initial public offering last year, which made Hong Kong the world's top listing venue.
The Shanghai-listed company has reportedly offered 1.4 billion new shares at HK$20.68 to HK$24.80 per share to be able to raise HK$34.72 billion ($4.5 billion).
People privy to the matter said that aside from Huatai, other private equity firms, which include a Chinese buyout firm, are also interested in AssetMark. The sources added that the winner in the bidding process will be announced this month.
According to the report, neither AssetMark nor Huatai disclosed any detail about the sale process, which is confidential, sources said.
Based in Concord, California, AssetMark provides asset management software to investment managers, broker dealers and investors, and manages more than $28.5 billion collectively on its platforms.
AssetMark was sold by parent company Genworth Financial in Sept. 2013 to a partnership of two private equity firms, Aquiline Capital Partners and Genstar Capital.
The two private equity firms acquired Genworth's wealth management business in a deal worth $412.5 million, which also included another separate investment management business named Altegris.
In 2015, Genstar and Aquiline partnered again to purchase Ascensus Inc., a technology provider to retirement and college savings plans, from JC Flowers & Co.
Together with Anbang, JC Flowers was part of the consortium which tried to buy Starwood Hotels & Resorts Worldwide Inc. for about $14 billion last month.
The U.S. Committee on Foreign Investment has approved Anbang's deal for insurance company Fidelity & Guaranty.
