Pensco pulls off ‘game changer’ of an acquisition

San Francisco-based Pensco Trust Co. is buying Lincoln Trust Co.’s IRA business.
The deal, expected to close in March, will boost Pensco’s IRA assets to more than $10 billion, up from $4 billion, the company indicated. The purchase will also increase its client base to 57,000 account holders, from 17,000. The new accounts will also give Pensco an additional 6,000 adviser relationships, the firms said in a statement, a substantial hike from the 200 advisers it now deals with.
“It’s a game changer for us,” Kelly Rodriques, Pensco’s chief executive, said in an interview.
Pensco is also acquiring Lincoln’s technology platform, which will give it capabilities to handle standard assets such as funds, stocks and ETFs, Mr. Rodriques said.
Private equity and real estate make up about three-quarters of the firm’s assets.
Terms of the deal were not disclosed.
Once it exits the IRA business, Lincoln Trust will focus on its business of providing 401(k) and other retirement plans, the Denver-based company said. Lincoln “will have greater resources to serve clients and build on its market leadership,” in the retirement plan space, chief executive Bob Beriault said in a statement.
Independent custodians have benefited from the growing interest in alternatives and a move by larger custodians to dump nonpriced assets from their platforms.