AssetMark Announces Partnership with Morningstar Wealth for $12 Billion Asset Acquisition
AssetMark, a leading wealth management platform for advisers, has made a significant move by announcing a partnership with Morningstar Wealth Turnkey Asset Management Platform. This partnership will see AssetMark acquiring $12 billion in assets from Morningstar Wealth, benefiting both companies and their clients.
The agreement states that AssetMark’s registered investment advisory will take 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. The transition will preserve the performance histories of the clients, with minimal paperwork required during the account migration process. The transaction is expected to be finalized in the second half of 2024.
Michael Kim, CEO of AssetMark, expressed excitement about the partnership, highlighting the alignment of two top-tier firms to deliver 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 globally, will make various model portfolios and independently managed accounts available to financial advisers working with AssetMark.
Daniel Needham, president of Morningstar Wealth, also shared his enthusiasm for the collaboration, emphasizing the opportunity to make their models accessible to more advisors. This partnership adds to AssetMark’s list of acquisitions, including Voyant and Adhesion Wealth in recent years.
Furthermore, AssetMark is in the process of being acquired by private equity firm GTCR for $2.7 billion. GTCR, with a strong presence in the financial services industry, aims to leverage AssetMark’s platform to expand its market share. The acquisition is expected to be finalized by the fourth quarter of this year.
Overall, the partnership between AssetMark and Morningstar Wealth signifies a strategic move in the wealth management industry, with both companies poised to enhance their offerings and provide greater value to their clients.
