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Thursday, February 29, 2024

Osaic to Purchase Lincoln’s $108B Wealth Enterprise  

One other insurance coverage firm is getting out of the unbiased dealer/supplier enterprise. Lincoln Nationwide Corp. has signed an settlement to promote its wealth administration unit to Osaic, the community of dealer/sellers formally often known as Advisor Group, for $700 million.

The unit consists of dealer/sellers Lincoln Monetary Advisors Company and Lincoln Monetary Securities Company, every with a company RIA.

The deal, anticipated to shut within the first half of 2024, will add about 1,450 advisors and $108 billion in whole property to Osaic’s community, together with some $71 billion in property below advisement and $38 billion in property below administration. 

In line with Osaic’s announcement, Lincoln Wealth’s companies will be part of as stand-alone entities, with the management crew, led by David Berkowitz, and workers remaining intact. However the companies shall be built-in into Osaic over time, because the agency has been doing with its current dealer/sellers. Advisors is not going to should do any repapering nor will there be a change to account numbers, the agency stated.  

“Lincoln Wealth will quickly assimilate into Osaic as a part of ‘Journey to One,’ together with our different companies, which is able to enable them to profit from our scale and the investments we’ve made in our advisors,” Osaic CEO Jamie Value stated in a press release. “The holistic method to wealth administration championed by Lincoln Wealth management and advisors mirrors our method and we goal to construct upon that robust basis.”

In September, Advisor Group, one of many largest networks of unbiased dealer/sellers with over 10,500 affiliated advisors, introduced it could merge its multibrand community right into a single entity with a brand new identify, Osaic.

Bloomberg lately reported that Reverence Capital Companions, which owns a majority stake in Osaic, is searching for consumers for a minority stake within the community of wealth administration companies. Reverence is wanting to promote as much as 20% of Osaic, a stake that might be price as a lot as $2.5 billion, in accordance with the publication. 

The deal is the most recent instance of a multi-year pattern of insurance coverage corporations shedding their brokerage companies. Many insurance coverage corporations have offered off their wealth companies over time, together with Jackson Nationwide, Securian Monetary Group, Voya Monetary, and MetLife, to call just a few.


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