OneDigital is selecting up the $ 6 billion value of retirement advisor, the final of many offers
OneDigital has acquired Westminster Consulting, based in Rochester, New York. This is the latest acquisition the insurance broker made in its recent entry into the retirement plan business.
The deal, announced Thursday, will expand OneDigital Investment Advisors’ Atlanta business, with approximately $ 6 billion in assets across 71 pension plans.
The addition of Westminster “will support OneDigital’s broader retirement and wealth division by streamlining fiduciary and investment advice for both defined contribution and defined benefit plans,” the company stated in its announcement.
Since OneDigital raised $ 45 billion from RIA Resources and some of its subsidiaries more than a year ago and catapulted itself into the retirement plan market, the company has acquired companies to further support this area. This came at a time when valuations seem to be at all-time highs and consolidation was rampant in the retirement advisory world.
The resource deal was “the first inning in an aggressive expansion for OneDigital,” said the company’s then co-founder Mike Sullivan.
Last year, the majority stake in OneDigital changed when New Mountain Capital, based in New York, sold its stake in the private equity firm Onex.
This doesn’t seem to have changed the company’s expansion plans.
Late last year, OneDigital completed the investment advisory relationships of Truist Financial Corp. acquired, representing 1,200 retirement plans and advised assets of approximately $ 10 billion. This was one of the last of the 37 deals OneDigital made in 2020, according to the company.
In January, OneDigital announced the acquisition of Fulcrum Partners, a $ 7 billion unqualified planning consultancy, and Vertical Financial Group, a $ 1 billion retirement planning consultant. A month later, the company bought Atlanta Retirement Partners, which at the time had 130 retirement plan customers representing approximately $ 1.3 billion in assets.
Westminster’s New York employees in Rochester, Syracuse and Great River, as well as employees in Princeton, New Jersey, will join OneDigital’s RIA, according to an announcement. Westminster specializes in fiduciary advice, advice and investment research for directors, trustees and investment committees.
OneDigital has more than 100 offices in the United States and approximately 5,000 customers from the retirement plan, who, according to the company, represent approximately 900,000 participants.
The merger and acquisition consultancy Wise Rhino Group advised Westminster on the deal.
The demand for lifetime income will increase
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