SageView Advisory Group and financial technology company Pontera have partnered on a platform to enable advisers to manage and trade clients’ retirement accounts.
Self-directed investment in retirement accounts such as 401(k)s and 403(b)s, are often “held away” assets that are not visible to advisers. The new platform aims for advisers to integrate them into their practice and monitor these off-platform retirement accounts.
Dave Goldman, Pontera’s chief business officer, says that the partnership allows Pontera to take advantage of SageView’s leading financial advice capability “both as a retirement plan adviser helping plan sponsors and a wealth manager with individual clients.”
Additionally, Pontera has enabled advisers to provide a wide-ranging suite of services, including asset allocation, compliance and security management.
“Our partnership bridges those two businesses by allowing their advisers to provide critical, value-driven services to plan sponsors and their participants directly,” Goldman says. “With Pontera, SageView advisers will be able to offer tailored discretionary financial management to individuals within their 401(k) accounts that incorporates the entirety of their assets and individual circumstances in a way that was not possible before.”
The platform passed rigorous cybersecurity quality controls that assess the risks associated with outsourced software solutions that store customer data online, according to the companies.
Allowing advisers to incorporate greater personalization for participants’ asset allocation is key to maximizing their retirement readiness, says Jim Dario, head of wealth management at SageView Advisory Group.
“Advisers must be able to present a comprehensive plan that delivers the best possible solution for their clients,” he says. “And this is extremely difficult to do without incorporating a client’s held away accounts, which often make up a significant portion of their assets. Partnering with Pontera allows us to provide advisors the additional tools they need to support their clients’ goals of creating long-term value and a more comfortable retirement.”
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M&A Update: Pensionmark Acquired by World Insurance Associates
The acquisition will bring some $80 billion in assets from across the Pensionmark network to World Insurance Associates, a national full-service insurance brokerage firm.
The pace of retirement plan adviser industry mergers and acquisitions shows no sign of slowing in 2022 despite some emerging economic headwinds, with the latest landmark deal being announced by World Insurance Associates and Pensionmark.
On Thursday, news emerged that World Insurance Associates LLC has entered into an agreement to acquire Pensionmark Financial Group, the large national network of retirement and financial planning registered investment advisers. According to the announcement from World, Pensionmark currently supports more than $80 billion in assets across its network.
The comprehensive transaction includes Pensionmark’s Advisor Support Platform, the Pensionmark Financial Group registered investment adviser and the Pensionmark Securities broker/dealer. The Pensionmark entities consist of more than 300 retirement plan specialists, financial advisers and staff.
Headquartered in Santa Barbara, California, Pensionmark has more than 65 locations in the U.S. The financial details of the transaction were not disclosed, but in conjunction with the acquisition, many existing Pensionmark advisers will become equity owners in World, which will enable them to participate in the future stock price appreciation of the combined business.
“Pensionmark is a natural fit with World since we both have the same value proposition for our clients and partners—provide a quality personal experience combined with large-scale resources,” says Rich Eknoian, World’s CEO. “The synergies between our two firms are undeniable. I am delighted to welcome the Pensionmark team to World and look forward to offering our clients and our acquisition partners an unparalleled experience.”
Troy Hammond, CEO of Pensionmark, echoes the sentiment.
“When we developed our adviser transaction model, we intentionally created a unique dynamic where an advisor could become an equity partner of a larger collective while maintaining ownership of their business,” he explains. “When entertaining our acquisition partner, we sought a firm that was committed to enhancing our platform, accelerating our growth and maintaining the team and culture that makes Pensionmark special. I know World is exactly that partner and I look forward to an exciting future for our clients and advisers.”
Michael Woods, president of Pensionmark, says his firm’s new partner is growth-minded and offers a suite of complementary verticals, including employee benefits, business insurance, payroll and human resources solutions.
“Employers are looking for our advisers to deliver more than just financial advice,” Woods says. “The ability to provide top-tier solutions for all our clients’ needs will prove to be invaluable for our clients’ growth, our advisers’ growth and our own growth.”
These comments about bringing advisory firms and insurance carriers closer together echo those made by other firms and industry executives who have entered into M&A transactions in recent years. According to Wise Rhino Group, which supported Pensionmark in the new transaction, insurance firms are arguably the best positioned to integrate retirement advisory firms, as most have established operating companies and have coveted growth currency in the form of employee benefits and property-casualty referrals.
Moving forward, Hammond will lead the financial services initiatives for World to continue to enhance the company’s suite of client offerings. He and the Pensionmark advisers will partner with Jennifer Barton of World’s employee benefits practice to offer a comprehensive total rewards solution for employers.
Asked for comment on World’s acquisition of Pensionmark, Ben Goldstein, CAPTRUST president, offered the following statement: “In 2015, CAPTRUST completed a transaction that included a minority investment in Pensionmark’s affiliate business, now known as the Pensionmark Retirement Group, plus the full acquisition of Pensionmark’s advisory business. At this time, we are divesting our investment in PRG, but will retain the advisory business located in Santa Barbara, California. We are thrilled with the great work and leadership of Troy Hammond and Mike Woods and the stellar investment returns PRG delivered to CAPTRUST shareholders. Further terms of the transaction are not being disclosed.”