The C$204.7 billion ($155.1 billion) Ontario Teachers’ Pension Plan, Toronto, and Lightyear Capital have agreed to acquire wealth management firm Allworth Financial from Parthenon Capital.
Although financial terms of the deal were not disclosed, a Lightyear spokesman confirmed that Allworth’s senior management team will remain major but not majority shareholders of the firm.
Lightyear and Ontario Teachers intend to keep the Allworth name and brand upon completion of the acquisition. Allworth provides retirement planning, investment advising and 401(k) management services, and has $9.3 billion in assets under management.
“We believe (Allworth) 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,” said Karen Frank, senior managing director, equities at Ontario Teachers, in a news release announcing the deal.
In the same release, Scott Hanson, co-founder and senior partner of Allworth Financial, added: “We are thrilled to be working with Lightyear and Ontario Teachers’ and are looking forward to leveraging their extensive experience in the financial services and wealth management space. 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.”
The transaction, which is subject to customary closing approvals, is expected to close before the end of the year.