OneDigital and Wintrust Investments, LLC Form Strategic Relationship for Retirement Plan Servicing Business

Rhea-AI Summary

OneDigital Investment Advisors LLC, a subsidiary of OneDigital, has acquired Wintrust Investments, LLC's Retirement Benefits Advisors division, bringing over $2.6 billion in advisory assets to the OneDigital platform. The strategic relationship aims to enhance client outcomes by providing holistic retirement planning solutions and increased capabilities for over 200 clients in Chicago. The transaction also strengthens OneDigital's national retirement plan advisory practice and expands its influence in the region.

Insights

Financial Analyst

The acquisition of Wintrust's Retirement Benefits Advisors division by OneDigital Investment Advisors LLC represents a strategic expansion in the retirement plan advisory market. This transaction is significant for OneDigital, as it brings an additional $2.6 billion in advisory assets, increasing their portfolio to over $100 billion. This move is likely to enhance OneDigital's purchasing power and service offerings, potentially resulting in improved economies of scale and competitive positioning within the retirement planning sector.

From a financial standpoint, the integration of Wintrust’s specialized expertise and client base could lead to increased revenue streams for OneDigital through cross-selling opportunities and higher retention rates. The partnership with Wintrust also suggests potential for a strengthened referral pipeline, which could further drive growth for OneDigital's retirement plan advisory services. Investors should monitor the company's subsequent financial statements for indications of the acquisition's impact on revenue and profit margins.

Market Research Analyst

The retirement plan advisory services market is highly competitive, with a growing demand for customized retirement planning solutions. OneDigital's acquisition of Wintrust’s division is a strategic move to consolidate its market presence, especially in the Chicago region where it already has a strong footprint. The addition of Wintrust's client base and the leadership of Dan Peluse could enhance OneDigital's market share and brand reputation.

Market trends indicate an increased emphasis on holistic retirement services that cater to the unique needs of employers and their employees. OneDigital's expanded capabilities, through this acquisition, may position it favorably to capitalize on these trends. Stakeholders should expect OneDigital to leverage this acquisition to innovate and enhance their service offerings, potentially attracting new clients while maintaining high levels of service for existing ones.

Legal Expert

Transactions of this nature typically involve complex regulatory considerations, given that both parties are operating within the financial advisory and retirement planning space. Compliance with SEC regulations and ensuring a smooth transition of fiduciary responsibilities are critical aspects of this acquisition. The successful transfer of advisory accounts and adherence to fiduciary duties will be essential to maintain client trust and avoid legal complications.

It is also important to consider the implications of the Employee Retirement Income Security Act (ERISA) in the management of retirement plan assets. OneDigital must ensure that the integration of Wintrust's Retirement Benefits Advisors division does not disrupt the compliance status of the retirement plans under their management. This acquisition may necessitate a thorough due diligence process and potentially re-negotiation of service agreements to align with OneDigital's operational standards and legal requirements.

Brings Over $2.6 Billion in Advisory Assets to the OneDigital Platform of Over $100 Billion

OVERLAND PARK, Kan. and CHICAGO, Feb. 15, 2024 (GLOBE NEWSWIRE) -- OneDigital Investment Advisors LLC, an SEC-registered investment adviser and wholly owned subsidiary of OneDigital, a leading insurance brokerage, financial services, and HR consulting firm (“OneDigital”), today announced it has entered into a strategic relationship with Wintrust Investments, LLC (“Wintrust”) whereby they will acquire Wintrust’s Retirement Benefits Advisors division based in Chicago. Wintrust is a subsidiary of Wintrust Financial Corporation (Nasdaq: WTFC).

Wintrust’s ongoing referral partnership with OneDigital will drive additional scale and increased capabilities to benefit their over 200 clients who sponsor workplace retirement savings plans. The Wintrust Retirement Benefits Advisors team, led by Dan Peluse, will continue to personally help their clients navigate the ever-changing retirement plan landscape with the specialized expertise and scale of OneDigital's national retirement plan advisory practice. They will join forces with OneDigital’s existing 35 teams, including group health insurance and property & casualty specialists, spread across their north central market to bring clients a broader set of resources to meet the unique needs of employers today.

Vincent Morris, President Retirement + Wealth, OneDigital, noted, “We are delighted that Wintrust Retirement Benefits Advisors has chosen to unite with OneDigital. The decision to align our strengths underscores a shared commitment to providing holistic, customized retirement planning and solutions that elevate client outcomes. OneDigital's strong footprint in Chicago, coupled with Wintrust's esteemed reputation and Dan Peluse’s proven leadership, positions us to further extend our influence in the region. I am so excited to have Dan and his team join the OneDigital family, and I look forward to continuing and enhancing the strong legacy of client service that both Wintrust and OneDigital are known for.”

“We are excited to be partnering with OneDigital. This deal will enable us to increase the value we can create for our clients through better purchasing power with both plan administrators and investment management firms and an expanded service offering beyond fiduciary plan consulting,” said Tom Zidar, Chairman and CEO of Wintrust Wealth Management.

The transaction brings advisory accounts with approximately $2.6 billion in retirement plan assets representing over 40,000 participants and 200 clients to OneDigital.

About OneDigital
OneDigital’s team of fierce advocates helps businesses and individuals achieve their aspirations of health, success and financial security. Our insurance, financial services and HR platform provides personalized, tech-enabled solutions for a contemporary work-life experience. Nationally recognized for our culture of caring, OneDigital’s teams enable employers and individuals to do their best work and live their best lives. More than 75,000 employers and millions of individuals rely on our teams for counsel and access to fully integrated worksite products and services and the retirement and wealth management advice provided through OneDigital Investment Advisors. Founded in 2000 and headquartered in Atlanta, OneDigital maintains offices in most major markets across the nation. To learn more, visit onedigital.com.

Investment advice offered through OneDigital Investment Advisors LLC, an SEC-registered investment adviser and wholly owned subsidiary of OneDigital.

About Wintrust Financial Corporation
Wintrust Financial Corporation is a financial holding company with assets of approximately $56 billion whose common stock is traded on the NASDAQ Global Select Market. Built on the "HAVE IT ALL" model, Wintrust offers sophisticated technology and resources of a large bank while focusing on providing service-based community banking to each and every customer. Wintrust operates fifteen community bank subsidiaries, with over 170 banking locations located in the greater Chicago and southern Wisconsin market areas. Additionally, Wintrust operates various non-bank business units including business units which provide commercial and life insurance premium financing in the United States, a premium finance company operating in Canada, a company providing short-term accounts receivable financing and value-added out-sourced administrative services to the temporary staffing services industry, a business unit engaging primarily in the origination and purchase of residential mortgages for sale into the secondary market throughout the United States, and companies providing wealth management services and qualified intermediary services for tax-deferred exchanges. Visit wintrust.com for more information.

FOR MORE INFORMATION CONTACT:
David A. Dykstra, Vice Chairman & Chief Operating Officer, Wintrust Financial Corporation
Thomas P. Zidar, Chairman & Chief Executive Officer, Wintrust Wealth Management
(847) 939-9000
Website address: www.wintrust.com

FAQ

What is the significance of the strategic relationship between OneDigital and Wintrust Investments, LLC?

The strategic relationship aims to enhance client outcomes by providing holistic retirement planning solutions and increased capabilities for over 200 clients in Chicago.

How much in advisory assets did the transaction bring to the OneDigital platform?

The transaction brought over $2.6 billion in advisory assets to the OneDigital platform.

Who will lead the Wintrust Retirement Benefits Advisors team after the acquisition?

Dan Peluse will continue to lead the Wintrust Retirement Benefits Advisors team after the acquisition.

What is the total number of participants and clients represented by the advisory accounts acquired by OneDigital?

The advisory accounts acquired by OneDigital represent over 40,000 participants and 200 clients.

What additional value will the partnership with OneDigital bring to Wintrust clients?

The partnership will bring better purchasing power with plan administrators and investment management firms and an expanded service offering beyond fiduciary plan consulting.