AssetMark to Enter Strategic Alliance with Morningstar Wealth, Acquire Assets from TAMP Business

AssetMark to Enter Strategic Alliance with Morningstar Wealth, Acquire Assets from TAMP Business

Wealth management platform AssetMark, Inc., a wholly owned subsidiary of AssetMark Financial Holdings, Inc. and a Registered Investment Adviser (collectively “AssetMark”), announced a strategic alliance with Morningstar Wealth, a division of independent investing insights firm Morningstar, Inc.

As part of the alliance, AssetMark will acquire approximately $12 billion in assets from the Morningstar Wealth Turnkey Asset Management Platform (“TAMP”). Financial advisors and clients on Morningstar Wealth’s TAMP will have access to AssetMark’s platform, which provides industry-leading service, advisor technology, business consulting, and a carefully curated set of investment strategists. The account migration process will be designed to be seamless, as it will generally not require additional new client paperwork and clients’ performance histories will be maintained.

Additionally, financial advisors currently working with AssetMark will gain access to a wide range of model portfolios and separately managed accounts managed by the Morningstar Investment Management team, which has over $290 billion of assets under management and advisement (“AUMA”) globally. Morningstar Wealth will join the AssetMark platform as a third-party strategist and continue to expand its lineup of investment services.

“Morningstar has a rich heritage of providing comprehensive investment insights and services to advisors and financial professionals around the globe,” said Michael Kim, Chief Executive Officer of AssetMark. “This relationship represents best-in-class firms strategically aligning to provide innovative solutions and high-quality service to financial advisors and their clients.”

“Our alliance with AssetMark marks a significant milestone for our business. AssetMark has a long track record of providing financial advisors with the service, tools, and investments they need to build a thriving practice, and we look forward to making our models accessible to more advisors,” said Daniel Needham, President of Morningstar Wealth. “We are aligning our efforts with a clear vision to combine the strengths of our unique capabilities, enabling the advisors we support to serve investors more effectively.”

AssetMark is an experienced acquirer and integrator with a strong track record of executing transactions that enhance the value it provides to advisors and empowers them to serve their clients more holistically and efficiently. In 2021, the firm acquired a global provider of SaaS-based financial planning solutions, and, in 2022, acquired a leading provider of wealth management technology solutions to RIAs, enterprises and asset managers.

This transaction was approved by the Boards of Directors of both AssetMark and Morningstar, Inc. and is expected to close in the second half of 2024, subject to regulatory approval, necessary consents, and other customary closing conditions.

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