Another big deal was announced Monday, one that reiterates an established trend in both industry consolidation and firms attempting to provide overall wealth management—from workplace retirement accounts to comprehensive household financial guidance.
Empower Retirement, the No. 2 player in the retirement plan record-keeper space behind Fidelity, has announced its acquisition of online registered investment advisor Personal Capital in a deal totaling $1 billion.
Far from being a merger of equals, Empower, which has more than 6,000 employees and administers $656 billion in assets for more than 9.7 million retirement plan participants, is a behemoth compared with Personal Capital, which currently manages $12 billion in client assets for just under 23,000 clients, according to its latest form ADV.
Principals, past and present, as well as pundits, welcomed the deal, many on social networks referring to it as an example of common sense