Empower Retirement has inked a deal with Fifth Third to acquire its record-keeping business in a move to expand retirement plan services for the bank, the companies announced Tuesday.
Empower will acquire 476 retirement plans and will provide record-keeping and administrative services for the plan's 100,000 participants, with $6.21 billion in assets, on Fifth Third’s platform, according to the announcement.
The terms of the agreement were not disclosed.
The transaction with Fifth Third is expected to close in the fourth quarter. When the deal closes, Fifth Third will continue to serve in a plan-level investment advisory capacity and manage $4.2 billion in plan assets.
The deal builds on a 16-year relationship between Empower and Fifth Third. Empower currently provides record-keeping services for Fifth Third’s retirement business through its private-label retirement plan unit, Empower Institutional. Because of this existing relationship, the Fifth Third plans will not require conversions.
Empower currently administers $667 billion in assets on behalf of 9.7 million American workers and retirees through approximately 41,000 workplace savings plans, according to the release.
“This is an exciting evolution of the existing 16-year relationship between Empower and Fifth Third,” Edmund F. Murphy III, president and CEO of Empower Retirement, said in the release. “With the addition of these plans to Empower’s platform, we will continue to expand our capabilities for these savers, enhance our financial wellness and advice offerings, and accelerate our value creation for all our stakeholders.”
The news comes on the heels of Empower Retirement’s $1 billion purchase of digital advice firm Personal Capital. The deal, announced in August, will result in Empower bringing Personal Capital in-house, with the robo and human advice firm being rebranded as Personal Capital, an Empower Company.
In September, Empower announced the acquisition of MassMutual’s retirement plan business, which is expected to close by the end of the year pending customary regulatory approvals.
From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.
Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.
“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.
Sellers shift focus: It's not about succession anymore.
Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.
RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.
As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.
