World Insurance Associates has agreed to buy Santa Barbara, California-based retirement and financial planning registered investment adviser, Pensionmark Financial Group.
Financial terms of the deal were not shared.
The deal covers Pensionmark’s Advisor Support Platform, the Pensionmark Securities broker-dealer and the Pensionmark Financial Group registered investment adviser.
Pensionmark, which supports over $80bn in assets across its network, serves employer and individual investor clients.
It has a network of more than 300 top retirement plan specialists, financial advisers and staff.
Pensionmark CEO Troy Hammond said: “When we developed our advisor transaction model, we intentionally created a unique dynamic where an adviser could become an equity partner of a larger collective while maintaining ownership of their business.
“When entertaining our acquisition partner, we sought a firm that was committed to enhancing our platform, accelerating our growth and maintaining the team and culture that makes Pensionmark special.”
As part of the transaction, several existing advisers of Pensionmark will become World Insurance Associates’ equity owners.
This allows the advisers to take part in the future stock price appreciation of the merged entity.
World Insurance Associates CEO Rich Eknoian said: “Pensionmark is a natural fit with World since we both have the same value proposition for our clients and partners—provide a quality personal experience combined with large-scale resources.
“The synergies between our two firms are undeniable. I am delighted to welcome the Pensionmark team to World and look forward to offering our clients and our acquisition partners an unparalleled experience.”
Hammond will be responsible for WIA’s all financial services initiatives.
Together with Pensionmark’s advisers, Hammond will team up with World Insurance employee benefits head Jennifer Barton to provide employers a “comprehensive total rewards solution”.
Legal counsel for World Insurance Associates was provided by Ropes & Gray and Steckler Wayne Cochran Cherry.
Alston & Bird offered legal counsel to Pensionmark whereas Ardea Partners LP was the exclusive financial adviser to Pensionmark.