AssetMark to Enter Strategic Alliance with Morningstar Wealth, Acquire Assets from TAMP Business
AssetMark announced a strategic alliance with Morningstar Wealth, involving the acquisition of approximately $12 billion in assets from Morningstar's Turnkey Asset Management Platform (TAMP). Financial advisors and clients on Morningstar's TAMP will gain access to AssetMark's platform, offering industry-leading service, advisor technology, and investment strategies.
Existing AssetMark advisors will benefit from new model portfolios and separately managed accounts managed by the Morningstar Investment Management team, which oversees $290 billion in assets globally.
The transaction, which is set to close in the second half of 2024, is subject to regulatory approval and other customary conditions.
- Acquisition of $12 billion in assets from Morningstar's TAMP.
- Access to AssetMark's industry-leading platform for Morningstar's clients.
- Enhanced offerings for AssetMark advisors through Morningstar's model portfolios and separately managed accounts.
- Morningstar Investment Management team manages $290 billion globally.
- Strategic alliance approval from both companies' Boards of Directors.
- Expected transaction close in the second half of 2024.
- None.
Insights
The strategic alliance between AssetMark and Morningstar Wealth involves a substantial asset acquisition worth approximately
From a financial perspective, this acquisition might lead to better economies of scale, leveraging the combined assets and technologies of both companies. The seamless account migration without new client paperwork is strategically efficient, potentially reducing operational disruptions and fostering client satisfaction. Moreover, AssetMark's history of successful acquisitions suggests a positive track record in integrating new assets and capabilities, which might reassure investors about the smooth execution of this alliance.
However, the acquisition's actual financial impact will depend on regulatory approvals and the integration process's efficiency. Investors should keep an eye on these factors to gauge the transaction's long-term benefits.
This strategic alliance reflects a broader trend in the wealth management industry, where firms are increasingly seeking to expand their capabilities and offerings through strategic acquisitions. By aligning with Morningstar Wealth, AssetMark not only broadens its asset base but also enhances its value proposition to financial advisors. The collaboration brings together AssetMark’s service and technology with Morningstar’s investment management expertise, which can be a compelling combination in a competitive market.
For retail investors, this partnership might translate into improved investment strategies and more comprehensive service from their advisors. Additionally, the integration of Morningstar's model portfolios can offer more diversified investment options. This can be particularly appealing to investors looking for diversified, professionally managed portfolios without the need for extensive personal research.
Nevertheless, the success of this alliance will hinge on how well these two entities merge their services and how effectively they communicate these enhanced offerings to advisors and clients. Any missteps in this process could undermine the intended benefits.
CONCORD, Calif., June 20, 2024 (GLOBE NEWSWIRE) -- Wealth management platform AssetMark, Inc., a wholly owned subsidiary of AssetMark Financial Holdings, Inc. and a Registered Investment Adviser (collectively “AssetMark”), today announced a strategic alliance with Morningstar Wealth, a division of independent investing insights firm Morningstar, Inc. (Nasdaq: MORN).
As part of the alliance, AssetMark will acquire approximately
Additionally, financial advisors currently working with AssetMark will gain access to a wide range of model portfolios and separately managed accounts managed by the Morningstar Investment Management team, which has over
“Morningstar has a rich heritage of providing comprehensive investment insights and services to advisors and financial professionals around the globe,” said Michael Kim, Chief Executive Officer of AssetMark. “This relationship represents best-in-class firms strategically aligning to provide innovative solutions and high-quality service to financial advisors and their clients.”
“Our alliance with AssetMark marks a significant milestone for our business. AssetMark has a long track record of providing financial advisors with the service, tools, and investments they need to build a thriving practice, and we look forward to making our models accessible to more advisors,” said Daniel Needham, President of Morningstar Wealth. “We are aligning our efforts with a clear vision to combine the strengths of our unique capabilities, enabling the advisors we support to serve investors more effectively.”
AssetMark is an experienced acquirer and integrator with a strong track record of executing transactions that enhance the value it provides to advisors and empowers them to serve their clients more holistically and efficiently. In 2021, the firm acquired a global provider of SaaS-based financial planning solutions, and, in 2022, acquired a leading provider of wealth management technology solutions to RIAs, enterprises and asset managers.
This transaction was approved by the Boards of Directors of both AssetMark and Morningstar, Inc. and is expected to close in the second half of 2024, subject to regulatory approval, necessary consents, and other customary closing conditions.
About AssetMark Financial Holdings, Inc.
AssetMark Financial Holdings, Inc. (“AFHI”) operates a wealth management platform whose mission is to help financial advisors and their clients. Together with our affiliates AssetMark Trust Company, Voyant and Adhesion Wealth Advisor Solutions, we serve advisors at every stage of their journey with flexible, purpose-built solutions that champion client engagement and drive efficiency. Our ecosystem of solutions equips advisors with services and capabilities that would otherwise require significant investments of time and money and aims to deliver better investor outcomes by enhancing their productivity, profitability, and client satisfaction.
AFHI announced in April 2024 that it signed a definitive agreement to be acquired by GTCR, a leading private equity firm with substantial investment expertise in financial technology, wealth and asset management, which is subject to customary closing conditions and required regulatory approvals and is expected to close in the fourth quarter of 2024. Consent to the transaction described in this press release was also provided by GTCR.
Founded in 1996, AFHI has over 1,000 employees and the AssetMark platform serves over 9,200 financial advisors and over 257,000 investor households. As of March 31, 2024, the company had
AssetMark, Inc. is a Registered Investment Adviser with the U.S. Securities and Exchange Commission.
About Morningstar Wealth
Morningstar Wealth is a global organization dedicated to empowering both advisor and investor success. Our extensive range of offerings includes the Morningstar International Wealth Platform (TAMP), model portfolios managed by the Morningstar Investment Management team (
*Includes AUMA for advisory services offered by certain Morningstar subsidiaries that are authorized in the jurisdictions in which they operate to provide investment management and advisory services
About Morningstar Inc.
Morningstar, Inc. is a leading provider of independent investment insights in North America, Europe, Australia, and Asia. The Company offers an extensive line of products and solutions that serve a wide range of market participants, including individual and institutional investors in public and private capital markets, financial advisors and wealth managers, asset managers, retirement plan providers and sponsors, and issuers of fixed-income securities. Morningstar provides data and research insights on a wide range of investment offerings, including managed investment products, publicly listed companies, private capital markets, debt securities, and real-time global market data. Morningstar also offers investment management services through its investment advisory subsidiaries, with approximately
Media Contacts:
AssetMark
Alaina.kleinman@assetmark.com
Morningstar Wealth
newsroom@morningstar.com
FAQ
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