Private equity firm Lightyear Capital and Ontario Teachers’ Pension Plan Board have agreed to snap up Sacramento, California-based wealth manager Allworth Financial for an undisclosed amount.
The seller is private equity firm Parthenon Capital.
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Transaction details
Allworth’s leadership and advisers will continue to have a significant ownership position post deal completion in the final quarter of this year.
Commenting on Allworth, Ontario Teachers’ senior managing director, Equities Karen Frank said: “We believe the company is an attractive investment given its differentiated and retirement-centric business model as well as industry tailwinds including an aging population and increased demand for professional and holistic wealth planning services.
“We look forward to supporting management’s long-term value creation and growth aspirations for Allworth.”
Set up in 1993, Allworth focuses on retirement planning, investment advising, tax planning and preparation, estate planning, as well as 401(k) management.
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By GlobalDataIt currently has around $10bn in client assets following completion of ten takeovers.
This year, Allworth snapped up Capstone Capital and Houston Asset Management.
Allworth co-founder and senior partner Scott Hanson said: “We are proud of what we have been able to accomplish to date and believe Lightyear and Ontario Teachers’ will help accelerate our pursuit of becoming a national firm that brings unbiased, straightforward retirement planning guidance to thousands of families.”
Allworth is the fifth wealth management investment by Lightyear’s affiliated investment funds.
Lightyear managing partner Mark Vassallo said: “Allworth has the opportunity to become a national brand name for providing financial advice.
“This investment is consistent not only with our long-term thesis around the growing need for financial advice, particularly in times of uncertainty, but also with our multiple prior successful investments in the space.”
