Wilshire Advisors, a Santa Monica-based global financial services firm, completed its acquisition of XTP Implementation Services at the end of August. Terms of the deal – Wilshire’s second-ever acquisition – were not disclosed.
Headquartered in Germany, XTP is a consultant with expertise in cost efficiency and enhancing transparency.
This transaction has been in the works for about six months, said Jason Schwarz, president and deputy chief executive at Wilshire. Schwarz made note of Wilshire’s yearslong relationship with XTP in which Wilshire was able to get a feel for the company’s culture, mission and “sophisticated” team before entering into a partnership.
“Historically, Wilshire has focused much of its efforts on performance and risk; and so the opportunity to acquire an organization that really focuses its efforts on cost and transparency adds a dimension of capability to our platform that we think is incredibly compelling,” Schwarz said.
Another aspect of XTP that drew Wilshire in was its global footprint, which will allow Wilshire to expand its reach to Germany, the U.K. and other parts of Europe.
Through this transaction, XTP will maintain its current leadership team and brand. Utilizing proprietary software, benchmarking databases and forensic capabilities with its data-driven approach, XTP has analyzed more than $3 trillion in assets in its 20-year history.
Many of XTP’s former shareholders have moved their equity to Wilshire.
“They are now investors and shareholders in Wilshire and are deeply aligned to our future journey together as a company and … they believe wholeheartedly in the opportunity presented with this new combined company,” Schwarz said.
This acquisition is reflective of the growth trajectory Wilshire plans to continue. In November 2023, the firm acquired investment advisory firm Lyxor Asset Management Inc. which grew Wilshire’s assets under management by $20.8 billion. As of March, Wilshire’s total AUM was $121 billion.
Schwarz described it as “an exciting time” for Wilshire with increased opportunity to pursue both “organic initiatives as well as pursue opportunities, as we’ve been doing, to grow through inorganic means.” This growth comes with the help of capital from Wilshire’s owners, CC Capital and Motive Partners, who purchased the firm in 2021.
“I would absolutely expect we will continue to be active in pursuing acquisitions that can drive growth and (add) capabilities that can be delivered to our clients,” Schwarz said.
