Wealth management and technology solutions provider AssetMark has agreed to acquire Adhesion Wealth from Vestmark.
The deal, whose financial terms are not disclosed, is expected to close in the second half of the year.
The acquired entity is a provider of wealth management technology solutions to registered investment advisers (RIAs), RIA enterprises and asset managers.
Its platform is used by more than 2,800 fee-based advisors across 180 RIAs to grow their practices by providing outsourced overlay trading services, client engagement technologies and managed account programmes.
AssetMark CEO Natalie Wolfsen said: “As advisors accelerate their growth by increasing the services they provide clients, the addition of Adhesion Wealth further strengthens our ability to serve the rapidly expanding RIA market with an ecosystem of flexible, purpose-built solutions that drive growth, efficiency and scale. We are excited to welcome the Adhesion team and advisors to AssetMark.”
The deal is said to expand AssetMark’s current offerings with the addition of a range of value-added services and solutions. These include personal and direct indexing, tax transition, portfolio administration, practice analytics and client reporting.
Following the transaction, Adhesion Wealth will continue to provide an open marketplace of modular solutions, which is said to complement AssetMark’s fully bundled capabilities and services delivered through AssetMark Institutional.
According to the company, the combined service offerings will be well-positioned to cater to a wider range of advisors, enterprises and asset managers.
The two companies will continue to tap Vestmark’s technology to support their platforms.
Adhesion Wealth president Barrett Ayers said: “Since our inception, Adhesion Wealth’s mission has always been to support growth-focused independent advisors with solutions that optimise their clients’ outcomes and their businesses.
“Joining AssetMark allows us to continue our mission and impact a broader group of advisors, while also giving us the ability to bolster our service offering and advance our investments in new capabilities to serve our existing advisors.”
This March, AssetMark brokered a deal to purchase SaaS-based financial planning and client digital engagement solutions provider Voyant for $145m.