Wealthcare Capital Management has signed a definitive merger agreement in which the company will be acquired by NewSpring Holdings, a private equity investment company located in Radnor, Pennsylvania.
Wealthcare, a pioneer of goals-based wealth management technology and advisory services, will run as a stand-alone company out of its existing headquarters in Richmond, Virginia.
In its partnership with NewSpring, Wealthcare will retain its core group of employees dedicated to advisor relations, its trusted operating and service structure, and its successful goals-based financial planning and wealth management services for advisors and their clients.
With NewSpring, Wealthcare will build on and enhance its proven history of helping advisors and their clients together achieve the lifelong financial goals they value most while minimizing taxes and fees.
Founded in 1999, Wealthcare is a pioneer of goals-based wealth management technology. Today, the Company operates its technology licensing business serving the clients of over 30,000 advisors who are affiliated with both independent financial services and Fortune 500 companies.
The wealth management technology licensees service an estimated US$200 billion in assets under their administration (AUA). Wealthcare also acts as a registered investment advisor overseeing more than US$800 million in assets under management (AUM) for clients in 35 states through its network of financial advisors or third-party financial advisory firms. Wealthcare’s businesses feature:
- Financeware financial planning software solutions, featuring the patented Comfort Zone methodology.
- Wealthcare’s integrated end-to-end RIA turnkey asset management (TAMP) practice which is one of the first true Unified Managed Household platforms (UMH).
Featuring its patented Comfort Zone methodology for advisors and their clients, Wealthcare plans to accelerate the growth of its unique goals-based financial planning and investment advisory solutions.
Key growth priorities going forward include: growing the Company’s talent pool, enhancing the web and mobile experience and expanding its network of advisor relationships.
David B. Loeper, founder and current chairman and CEO of Wealthcare, said: "I have a history of creating unique business models in our industry and eventually passing the baton to others who have the know-how to scale those businesses. Wealthcare is my greatest creation and it needs to be in the hands of the most conscientious and caring advisors to help more clients attain their financial goals. Now is the time for the Company to spread its wings."
Effective immediately upon closing expected in December 2013 Len Reinhart will become the Executive Chairman of the Company.
Mr. Reinhart was the President of Smith Barney’s Consulting Group, the Founder and CEO of the Lockwood family of Companies and subsequently became the CEO of Pershing Managed Account Solutions, a division of Bank of New York Mellon.
Reinhart said: "I’ve been involved with Wealthcare since its inception in 1999 and more recently as a Board Director. Dave Loeper pioneered the concept of Management by Objective a decade ago, before it became the buzzword of the financial services industry. Wealthcare is well-positioned to lead the industry through this next major sea change in its evolution and I’m thrilled to be leading the way."