AssetMark Announces Partnership with Morningstar Wealth for $12 Billion Asset Acquisition
AssetMark, a leading wealth management platform for advisers, has announced a groundbreaking partnership with Morningstar Wealth Turnkey Asset Management Platform. In this strategic move, AssetMark will acquire $12 billion in assets from Morningstar Wealth, expanding its reach and offerings to financial advisers and clients.
The agreement entails that AssetMark’s registered investment advisory will take on the assets, ensuring a seamless transition for Morningstar Wealth’s TAMP clients and financial advisers. This move will grant them access to AssetMark’s platform, which boasts investment strategists, adviser technology, and business consultancy services. Notably, the performance histories of the clients will be preserved during the migration process, minimizing disruptions and paperwork requirements.
Michael Kim, CEO of AssetMark, expressed excitement about the collaboration, stating, “Morningstar has a rich heritage of providing comprehensive investment insights and services to advisers and financial professionals around the globe. This relationship represents best-in-class firms strategically aligning to provide innovative solutions and high-quality service to financial advisors and their clients.”
Furthermore, the Morningstar Investment Management team, with over $290 billion in assets under management globally, will offer a range of model portfolios and independently managed accounts to financial advisers working with AssetMark. As a third-party strategist on the platform, Morningstar Wealth will continue to enhance its investment services portfolio.
This acquisition is part of AssetMark’s growth strategy, following previous acquisitions of Voyant and Adhesion Wealth. Additionally, AssetMark is currently in the process of being privatized through an acquisition agreement with private equity firm GTCR, valued at $2.7 billion. GTCR, known for its significant investments in various industries, aims to leverage AssetMark’s platform to expand its market share, with the transaction expected to close by the end of the year.
Overall, this partnership between AssetMark and Morningstar Wealth signifies a significant development in the wealth management industry, offering enhanced services and opportunities for financial advisers and clients alike.