AssetMark & Morningstar Wealth Form Strategic Alliance

AssetMark Financial Holdings Inc.'s AMK wholly-owned subsidiary AssetMark Inc. entered into a strategic coalition with Morningstar Wealth, a division of Morningstar Inc. MORN. The transaction, approved by the board of directors of both companies, is expected to be closed in the second half of 2024, subject to regulatory approvals.
AssetMark will acquire roughly $12 billion in assets from Morningstar Wealth Turnkey Asset Management Platform ("TAMP") as part of the alliance. AssetMark's platform, which offers top-tier service, advisor technology, business consulting and a diligently selected group of investment strategists, will be accessible to financial advisors and clients on Morningstar Wealth's TAMP.
Further, AssetMark's financial advisors will gain access to a broad range of model portfolios and separately managed accounts managed by the investment management team of Morningstar, having more than $290 billion of assets under management and advisement worldwide. Morningstar Wealth will integrate into AMK's platform as a third-party strategist and continue broadening its investment services range.
Michael Kim, CEO of AssetMark, said, "This relationship represents best-in-class firms strategically aligning to provide innovative solutions and high-quality service to financial advisors and their clients."
Daniel Needham, president of Morningstar Wealth, said, "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."
This move aligns with AMK's organic growth strategy through competitive and diversified strategies. The company has been engaged in opportunistic buyouts as well.
AssetMark is a seasoned acquirer and integrator with a proven history of executing transactions that boost the value it offers to advisors and enable them to serve their clients holistically and efficiently. In 2022, it acquired Adhesion Wealth Advisor Solutions Inc., a prominent wealth management technology solutions provider, adding $6.9 billion in platform assets. In 2021, AMK acquired Voyant, Inc., a global provider of SaaS-based financial planning solutions, while in 2020, it acquired OBS Financial Services, Inc.
AssetMark's shares have gained 17.2% in the past six months compared with the industry's 8.6% growth.

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AMK presently carries a Zacks Rank #4 (Sell).

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