A retirement plan and wealth administration agency that itself was acquired final 12 months by a personal equity-backed insurance coverage firm will add greater than 150 monetary advisors in an M&A deal.
Pensionmark Monetary Group — a brokerage and registered funding advisory agency subsidiary of World Insurance Associates — will add 164 advisors and $5.5 billion in shopper belongings from Lincroft, New Jersey-based Tomorrow’s Financial Services and TFS Wealth Administration after the events entered into an acquisition agreement on Aug. 23. The announcement got here two days after funds suggested by Goldman Sachs Asset Administration agreed to speculate $1 billion into World Insurance coverage alongside current non-public fairness backer Charlesbank Capital Companions in a deal valuing the corporate at $3.4 billion, a press release said.
The TFS Wealth deal consists of its subsidiaries in brokerage agency TFS Securities, TFS Insurance coverage Company and TFS Mortgage Company and can push the variety of monetary advisors at Pensionmark to 307. TFS President Thomas Hyland will stay in his function atop his 55-year-old agency, with the remainder of the administration group and workers anticipated to remain on as properly following the anticipated closure within the fourth quarter.
“TFS is centered on the idea that the pursuits of the shopper should all the time come first,” Hyland mentioned in a press release. “Our aim is to offer our purchasers with complete training and the steering vital to assist them make sound monetary choices. Our partnership with World will develop our capabilities and solidify our future for a few years to come back whereas offering us vital sources and entry to extra purchasers that we will serve.”
Santa Barbara, California-based Pensionmark additionally has a brokerage arm in Pensionmark Securities and an exterior brokerage relationship with St. Bernard Securities, in accordance with its Form ADV brochure with the Securities and Change Fee. Pensionmark spans greater than 350 advisors and workers servicing 5,000 retirement plans and $76 billion in whole supported belongings throughout its wealth and 401(ok) divisions, in accordance with the agency’s web site. It got here to World Insurance coverage final 12 months as one in every of greater than 195 acquisitions the conglomerate has made since its founding in 2011.
“The acquisition of TFS underscores the dedication we’ve made to delivering best-in-class wealth options to the monetary advisors we serve,” Pensionmark CEO Troy Hammond mentioned in a press release. “TFS has an awesome tradition, cutting-edge expertise, nice help employees and a high-touch strategy, which aligns with our philosophies on how we serve our advisors and their purchasers. I’m thrilled to have Thomas Hyland and his wonderful group as a part of the Pensionmark/World household.”
Funds suggested by Goldman’s non-public fairness and hybrid capital groups agreed to affix Charlesbank within the funding into World, which has over 2,000 workers in 260 workplaces working with over 300,000 purchasers and producing greater than $500 million in annual income within the retail and wholesale insurance coverage trade and amongst its retirement and wealth administration models. The events count on Goldman’s funding to shut within the fourth quarter as properly.
“We’re extraordinarily excited to have a number one international monetary establishment like Goldman Sachs be part of Charlesbank at this juncture in our partnership,” World Insurance coverage CEO Wealthy Eknoian mentioned in a press release. “The key funding Goldman Sachs is making in World might be an accelerant for us, and we intend to take full benefit of it. As we proceed to aggressively execute our progress plan, that is momentous affirmation that our distinctive, built-in enterprise mannequin is working.”