OneDigital, an employee benefits company, has broken into the retirement plan advisory business by buying registered investment adviser Resources Investment Advisors and eight of its affiliated firms, including Chepenik Financial and Bukaty Companies Financial Services.
In addition, it bought Cafaro Greenleaf, Capstone Advisory Group and a large advisory practice of Fulcrum Partners, all of which will move or have already moved to Resources Investment Advisors' RIA platform.
The multiple acquisitions will bring more than $41 billion in assets under advisement to OneDigital's new retirement benefits business, said Mike Sullivan, co-founder and chief growth officer at OneDigital.
"This is our push into the marketplace," Mr. Sullivan said, explaining that employers today want to offer health insurance and employee benefits that are integrated with their retirement plan and financial counseling services.
"The market is asking for a more holistic and integrated approach," he said. "We're making a significant move into the retirement space because our employers are asking for it."
Mr. Sullivan declined to disclose how much OneDigital paid for the acquisitions.
Resources Investment Advisors, an Overland Park, Kan.-based RIA firm that supports independent financial advisers focused on corporate retirement plans, has assets under advisement that include 2,600 plans and $45 billion in assets under management, said Vincent Morris, president at Resources.
The firms affiliated with Resources that OneDigital acquired are Bukaty, 401k Advisors Intermountain, Chepenik, SHA Retirement Group, Strategic Retirement Group, Teros Advisors, and three California-based adviser practices of Retirement Benefits Group. In total, the Resources' affiliated firms and practices have about $36 billion in retirement plan assets under advisement, Mr. Morris said.
OneDigital also acquired four firms and one advisory practice that were not originally affiliated with Resources but have since joined or will join the Resources RIA platform. The four firms, which include Cafaro Greenleaf, Capstone and a San Diego-based adviser practice of Fulcrum Partners, have more than $5.8 billion in assets under advisement, Mr. Morris said.
OneDigital is the latest insurance brokerage firm to move aggressively into the retirement plan advisory market. Hub International last year acquired 10 firms, including Global Retirement Partners, a $40 billion registered investment adviser through which many of the acquired firms cleared their transactions.
OneDigital differs from other insurance brokerage firms buying retirement plan advisory firms, Mr. Sullivan said, by focusing only on health and employee-related benefits, and not on property and casualty insurance.