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AssetMark will enter into strategic alliance with Morningstar Wealth and acquire assets from TAMP Business
AssetMark, Inc.
CONCORD, Calif., June 20, 2024 (GLOBE NEWSWIRE) – AssetMark wealth management platform, Inc., a wholly owned subsidiary of AssetMark Financial Holdings, Inc. and Registered Investment Advisor (collectively “AssetMark”), today announced a strategic alliance with Morningstar Wealtha division of independent investment insights company Morningstar, Inc. (Nasdaq: MORN).
As part of the alliance, AssetMark will acquire approximately $12 billion in assets from the Morningstar Wealth Turnkey Asset Management Platform (“TAMP”). Morningstar Wealth’s financial advisors and TAMP clients will have access to the AssetMark platform, which provides industry-leading services, advisory technology, business advice and a carefully curated set of investment strategists. The account migration process will be designed to be seamless as it will generally not require additional documentation from new customers and customer performance histories will be maintained.
Additionally, financial advisors currently working with AssetMark will have access to a wide range of model portfolios and separately managed accounts managed by the Morningstar Investment Management team, which has over $290 billion in assets under management and advice (“AUMA” ) globally. Morningstar Wealth will join the AssetMark platform as a third-party strategist and will continue to expand its line of investment services.
“Morningstar has a rich heritage of providing comprehensive investment information and services to advisors and financial professionals around the world,” said Michael Kim, CEO of AssetMark. “This relationship represents best-in-class companies strategically aligning to provide innovative solutions and high-quality services to financial advisors and their clients.”
“Our alliance with AssetMark is a significant milestone for our business. AssetMark has a long history of providing financial advisors with the services, 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 increase the value it provides to advisors and enable them to serve their clients more holistically and efficiently. In 2021, the company acquired a global provider of SaaS-based financial planning solutions, and in 2022, it acquired a leading provider of wealth management technology solutions for RIAs, corporations and asset managers.
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This transaction has been approved by the Boards of Directors of AssetMark and Morningstar, Inc. and is expected to close in the second half of 2024, subject to regulatory approval, required consents and other customary closing conditions.
About 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 promote 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 results to investors by increasing their productivity, profitability and client satisfaction.
AFHI announced in April 2024, which has signed a definitive agreement to be acquired by GTCR, a leading private equity firm with substantial experience in financial technology, wealth and asset management investments, which is subject to customary closing conditions and required regulatory approvals and is expected to close in the fourth quarter of 2024. Consent for the transaction described in this press release was also provided by GTCR.
Founded in 1996, AFHI has more than 1,000 employees and the AssetMark platform serves more than 9,200 financial advisors and more than 257,000 investor families. As of March 31, 2024, the company had $116.9 billion in platform assets.
AssetMark, Inc. is a registered investment advisor with the U.S. Securities and Exchange Commission.
About Morningstar Wealth
Morningstar Wealth is a global organization dedicated to empowering advisors and investors to succeed. Our broad range of offerings includes the Morningstar International Wealth Platform (TAMP), model portfolios managed by the Morningstar Investment Management team ($294 billion in assets under management and advisory*), Morningstar Office (portfolio management software), ByAllAccounts (aggregation and data enrichment). ), Morningstar Investor (platform for individual investors) and Morningstar.com.
*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 across 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, providers and plan sponsors pensions and fixed bond issuers. – income bonds. Morningstar provides data and research insights across a wide range of investment offerings, including managed investment products, publicly traded companies, private equity markets, debt securities, and real-time global market data. Morningstar also provides investment management services through its investment advisory subsidiaries, with approximately $294 billion in AUMA as of March 31, 2024. The company operates through wholly or majority-owned subsidiaries in 32 countries. For more information visit www.morningstar.com/company. Follow Morningstar on X (formerly known as Twitter) @MorningstarInc.
Media Contacts:
Asset tag
Alaina.kleinman@assetmark.com
Morningstar Wealth
newsroom@morningstar.com
