AssetMark to Acquire $12B in Assets From Morningstar Wealth

By Janet Levaux

News June 20, 2024 at 12:30 PM

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Wealth management platform provider AssetMark is acquiring some $12 billion in assets from the Morningstar Wealth turnkey asset management platform, the two firms said Thursday.

Through the arrangement, financial advisors and clients using the Morningstar Wealth Platform will gain access to AssetMark's full platform, which includes advisor technology, business consulting and a group of investment strategists.

This transaction was approved by the two firms' boards and is expected to close in the second half of 2024, subject to customary closing conditions.

AssetMark, which is also a registered investment advisor, had close to $117 billion of platform assets as of March 31. In April, the firm struck a deal to be bought by the private equity firm GTCR for $2.7 billion.

"This relationship represents best-in-class firms strategically aligning to provide innovative solutions and high-quality service to financial advisors and their clients," according to AssetMark CEO Michael Kim.

The firms say no client paperwork will be required as part of the movement of assets. Also, the 9,200 advisors now working with AssetMark will gain access to a range of model portfolios and separately managed accounts managed by Morningstar's investment team, which has about $290 billion of assets under management and advisement.

"Our alliance with AssetMark marks a significant milestone for our business," said Morningstar Wealth President Daniel Needham, in a statement. "We are aligning our efforts with a clear vision to combine the strengths of our unique capabilities, enabling the advisors we support to serve investors more effectively."

Morningstar is hosting its yearly investment conference next week in Chicago.

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