September 29, 2023


Learn Business From Experience

World Insurance coverage’s Pensionmark so as to add TFS Wealth

3 min read

A retirement plan and wealth administration agency that itself was acquired final yr by a personal equity-backed insurance coverage firm will add greater than 150 monetary advisors in an M&A deal.

Pensionmark Monetary Group — a brokerage and registered funding advisory agency subsidiary of World Insurance Associates — will add 164 advisors and $5.5 billion in shopper belongings from Lincroft, New Jersey-based Tomorrow’s Financial Services and TFS Wealth Administration after the events entered into an acquisition agreement on Aug. 23. The announcement got here two days after funds suggested by Goldman Sachs Asset Administration agreed to take a position $1 billion into World Insurance coverage alongside current personal fairness backer Charlesbank Capital Companions in a deal valuing the corporate at $3.4 billion, a press release said.

The TFS Wealth deal contains its subsidiaries in brokerage agency TFS Securities, TFS Insurance coverage Company and TFS Mortgage Company and can push the variety of monetary advisors at Pensionmark to 307. TFS President Thomas Hyland will stay in his position atop his 55-year-old agency, with the remainder of the administration crew and staff anticipated to remain on as properly following the anticipated closure within the fourth quarter.

“TFS is centered on the assumption that the pursuits of the shopper should all the time come first,” Hyland mentioned in an announcement. “Our objective is to supply our purchasers with complete schooling and the steerage obligatory to assist them make sound monetary selections. Our partnership with World will broaden our capabilities and solidify our future for a few years to return whereas offering us vital sources and entry to extra purchasers that we are able to serve.”

Santa Barbara, California-based Pensionmark additionally has a brokerage arm in Pensionmark Securities and an exterior brokerage relationship with St. Bernard Securities, in keeping with its Form ADV brochure with the Securities and Change Fee. Pensionmark spans greater than 350 advisors and staff servicing 5,000 retirement plans and $76 billion in whole supported belongings throughout its wealth and 401(okay) divisions, in keeping with the agency’s web site. It got here to World Insurance coverage final yr as one in all greater than 195 acquisitions the conglomerate has made since its founding in 2011.

“The acquisition of TFS underscores the dedication we’ve made to delivering best-in-class wealth options to the monetary advisors we serve,” Pensionmark CEO Troy Hammond mentioned in an announcement. “TFS has a fantastic tradition, cutting-edge expertise, nice help employees and a high-touch method, which aligns with our philosophies on how we serve our advisors and their purchasers. I’m thrilled to have Thomas Hyland and his superb crew as a part of the Pensionmark/World household.”

Funds suggested by Goldman’s personal fairness and hybrid capital groups agreed to hitch Charlesbank within the funding into World, which has over 2,000 staff in 260 places of work working with over 300,000 purchasers and producing greater than $500 million in annual income within the retail and wholesale insurance coverage trade and amongst its retirement and wealth administration items. The events count on Goldman’s funding to shut within the fourth quarter as properly.

“We’re extraordinarily excited to have a number one world monetary establishment like Goldman Sachs be part of Charlesbank at this juncture in our partnership,” World Insurance coverage CEO Wealthy Eknoian mentioned in an announcement. “The main funding Goldman Sachs is making in World can be an accelerant for us, and we intend to take full benefit of it. As we proceed to aggressively execute our progress plan, that is momentous affirmation that our distinctive, built-in enterprise mannequin is working.”

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