Pensco pulls off 'game changer' of an acquisition

Pensco pulls off 'game changer' of an acquisition
Purchasing IRA business of Lincoln Trust; larger custodians dumping nontraditional investments
FEB 21, 2012
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.

Latest News

Fintech bytes: FP Alpha rolls out estate insights feature
Fintech bytes: FP Alpha rolls out estate insights feature

Also, wealth.com enters Commonwealth's tech stack, while Tifin@work deepens an expanded partnership.

Morgan Stanley, Atria job cut details emerge
Morgan Stanley, Atria job cut details emerge

Back office workers and support staff are particularly vulnerable when big broker-dealers lay off staff.

Envestnet taps Atria alum Sean Meighan to sharpen RIA focus
Envestnet taps Atria alum Sean Meighan to sharpen RIA focus

The fintech giant is doubling down on its strategy to reach independent advisors through a newly created leadership role.

LPL, Evercore welcome West Coast breakaways
LPL, Evercore welcome West Coast breakaways

The two firms are strengthening their presence in California with advisor teams from RBC and Silicon Valley Bank.

Supreme Court slaps down brokerage's appeal vs. FINRA expulsion case
Supreme Court slaps down brokerage's appeal vs. FINRA expulsion case

The high court's decision rebuffing Alpine Securities marks a setback for a broader challenge to Wall Street's reliance on self-regulatory organizations.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave

SPONSORED The evolution of private credit

From direct lending to asset-based finance to commercial real estate debt.