Third-party administrators (TPAs) haven’t always received the same attention as retirement plan advisors or wealth management firms. But that’s starting to change. Private equity firms are taking a growing interest in TPAs because they offer steady revenue, opportunities for growth and the potential to use technology and AI to improve operations.
As retirement plans become more complex and more employers offer retirement benefits, TPAs are also becoming more important to advisors, recordkeepers and plan sponsors. But buying a business is one thing. Making it successful is another. Firms must find ways to bring operations together without losing the experienced employees and trusted client relationships that make TPAs valuable in the first place.
And as larger firms continue to grow, where does that leave smaller, independent TPAs?
Read the full article for Fred Barstein’s look at why private equity is betting big on TPAs and what it could mean for the retirement industry.
