“AssetMark Acquires $12 Billion in Assets from Morningstar Wealth – Strategic Partnership Announced!”
AssetMark, a leading wealth management platform for advisers, has made a significant move in the industry by announcing a partnership with Morningstar Wealth Turnkey Asset Management Platform. This partnership involves AssetMark acquiring $12 billion in assets from Morningstar Wealth, a transaction that is expected to close in the second half of 2024.
The agreement between AssetMark and Morningstar Wealth will see AssetMark’s registered investment advisory taking on the assets, providing Morningstar Wealth’s TAMP clients and financial advisers access to AssetMark’s platform. This platform offers a range of services including investment strategists, adviser technology, and business consultancy. Importantly, the performance histories of the clients will be preserved during the account migration process, with minimal new paperwork required.
Michael Kim, CEO of AssetMark, highlighted the strategic alignment between the two firms, emphasizing the goal of providing innovative solutions and high-quality service to financial advisors and their clients. The Morningstar Investment Management team, with over $290 billion in assets under management and advice globally, will make various model portfolios and independently managed accounts available to financial advisers working with AssetMark.
Daniel Needham, president of Morningstar Wealth, expressed excitement about making their models accessible to more advisors through this partnership. This deal is part of a series of acquisitions for AssetMark, following the acquisitions of Voyant and Adhesion Wealth in previous years.
In addition to this partnership, AssetMark is also undergoing its own acquisition agreement with private equity firm GTCR. This deal, announced in April, involves GTCR acquiring AssetMark for $2.7 billion, with plans to privatize the wealth management platform. GTCR, with a strong presence in the financial services, technology, and healthcare industries, aims to leverage AssetMark’s platform to increase its market share.
Overall, these developments signal a significant shift in the wealth management industry, with AssetMark positioning itself as a key player through strategic partnerships and acquisitions. The collaboration with Morningstar Wealth and the impending acquisition by GTCR demonstrate AssetMark’s commitment to providing top-notch services and solutions to financial advisors and their clients. As the industry continues to evolve, it will be interesting to see how these partnerships and acquisitions shape the future landscape of wealth management.