Deals & People April 29, 2024

Advisory M&A News – 4/29/24

Aon completes acquisition of NFP; Wealth Enhancement Group adds Lynch Retirement Investment Group; UBS hires financial adviser team led by Toregas.

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Aon Completes Acquisition of NFP

Aon plc, a professional services firm, announced that it has completed the acquisition of NFP from funds affiliated with NFP’s main capital sponsor, Madison Dearborn Partners.

The transaction also included funds affiliated with HPS Investment Partners for an enterprise value of $13 billion, including $7 billion cash and assumed liabilities as well as $6 billion in equity in the form of 19 million Aon shares.

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The acquisition of NFP expands Aon’s presence in the large and fast-growing middle-market segment. As an Aon company, NFP will operate as an “independent and connected” platform delivering risk capital and human capital capabilities from across Aon. The team will continue to be led by NFP CEO Doug Hammond, reporting into Aon President Eric Andersen.

“It is a historic day for our firm as we welcome NFP to Aon and work together to help clients address increasing volatility across risk and people issues,” Greg Case, CEO of Aon, said in a statement. “With high performing teams and leading content and capability—further enabled by our Aon business services operating platform – we will create more value for our clients.”

Wealth Enhancement Group Adds Lynch Retirement Investment Group

Wealth Enhancement Group announced the addition Lynch Retirement Investment Group, a hybrid RIA located in Columbia, Maryland. The team of three financial advisers and three support team members manages over $502 million in client assets and is led by senior adviser, John Lynch.

Founded in 1990, Lynch Retirement Investment Group offers guidance in financial planning, asset management, wealth management, longevity planning, retirement planning, tax planning and estate planning. The firm’s leaders have 50 years of combined experience.

“By partnering with Wealth Enhancement Group, our team will gain access to more resources and services to better serve our clients,” Lynch said in a statement.

The addition of Lynch Retirement Investment Group is Wealth Enhancement Group’s fourth location in Maryland.

UBS Hires Financial Adviser Team Led by Toregas

UBS Wealth Management USA announced that Christopher Toregas has joined the firm as a managing director and senior portfolio manager in the Century City office. Christopher and his team will join the firm’s Los Angeles market, managed by Market Executive Lauren Gorsche and Market Director Kreg Pearless.

“As one of the fastest growing financial advisers in the country, Christopher works with some of the most successful families in Southern California, New York City and beyond,” Pearless said in a statement. “Christopher and his team have deep expertise in helping families navigate the pre-liquidity planning process.”

Toregas Wealth Management provides personalized wealth management advice for corporate executives, entrepreneurs and individuals in the entertainment industry. The firm works with families across the country, with a distinct focus on New York and Southern California. Toregas is joined by Stephanie Ellor, team administrator.

Toregas previously worked at Morgan Stanley, where he founded and led the next-gen wealth management group in New York City before opening his team’s West Coast office.

Client Service April 29, 2024

Adviser Opportunities

Vestwell’s Kevin Gaston offers an analysis of legislative changes, emerging challenges and strategic financial opportunities.

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In 2024, advisers are facing both challenges and opportunities stemming from recent retirement legislation and a workplace push toward financial wellness for employees.

Kevin Gaston, director of plan design consulting at Vestwell, discussed these and other focus areas on April 25 during a webinar entitled “What’s Trending in 2024?” In the talk, Gaston focused on the role Congress has played in shaping retirement plans through legislative actions with the goal of enhancing savings options for Americans and encouraging businesses to offer retirement plans. 

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One area of particualr note for plan advisers and sponsors, he said, was the the push toward more post-tax Roth savings for participants.

“One of the ways they did that is by adding a lot more Roth provisions,” Gaston explained. “Highly compensated employees can no longer catch up in pretax [savings], they have to go to Roth. However, they didn’t tell us how to do that … so now it is delayed until 2026.”

Gaston was referring to the Internal Revenue Service in August 2023 providing a two-year extension for the mandate that catch-ups from participants in 401(k), 403(b), or governmental 457(b) plans earning $145,000 or more be made as Roth contributions. That allowed for plan sponsors and recordkeepers to prepare for the mandate that will be a major shift toward Roth account use.

State Engagement

Gaston also noted state mandates that are aimed at bolstering retirement savings among small businesses outside of federal actions. He explained how, even though there are state auto-IRA options, the mandates are creating conversations around retirement planning and increased participation rates across providers.

He noted that employers don’t have to join the state plan, but they must provide some kind of plan—giving a chance for plan advisers to step in.

“What we’re hearing is real feedback from advisers who are coming to us and saying, ‘I’m getting calls from my small business owners I work with asking what do I do?’” he says. “This is your opportunity to tell them, ‘Did you know there’s credits to start a retirement plan? Did you know you can get credit for giving the matching, get a safe harbor?’”

Student Loan Matching

Transitioning to the issue of student loans, Gaston addressed the growing concern and impact of student loan debt on retirement planning. He highlighted the various solutions, including student loan repayment programs and employer matching contributions, as ways to alleviate the burden of student debt for participants so they can save for retirement.

Gaston concluded that a holistic approach to retirement planning is like a “pyramid of savings.” He stated the importance of stabilizing emergency funds, maximizing retirement contributions and addressing liabilities such as student loans.

Rather than just focusing on retirement, the recent legislation provides an opportunity for advisers to work with them on a larger range of employee benefit options.

“I think if you think about [financial wellness] holistically as an adviser, that is how you can talk to folks. You can really help them move upstream and understand where the next best dollar goes,” said Gaston.

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