Great Gray has acquired RPAG, a leading 401(k) practice management platform for retirement plan advisors. Despite the acquisition, RPAG will continue to operate under its brand and leadership. The acquisition has raised questions about which staff members will stay with RPAG and which will remain at flexPATH. Notably, Nick della Vedova, RPAG’s president, seems to be part of the Great Gray deal, while CEO Vince Giovinazzo is likely to stay with flexPATH.
This move is surprising since Great Gray, RPAG, and flexPATH are all owned by Madison Dearborn Partners, making it rare for a private equity firm to execute a deal between portfolio companies. It’s unclear why RPAG was moved to Great Gray instead of staying with flexPATH.
RPAG has a wide reach, claiming $1.2 trillion in assets, 120,000 plans, and 10 million participants. Their acquisition could help funnel assets to Great Gray’s partners, benefiting from RPAG’s strong distribution channels. The acquisition also reflects broader trends in the RPA (Retirement Plan Advisor) industry, where firms need to diversify revenue sources through financial planning, CIT co-created products, and managed accounts.
This deal may also signal the continuing RPA consolidation, where scale alone isn’t enough, and firms must focus on alternative distribution channels and negotiating deeper discounts on CITs.
To learn more, read Fred Barstein’s weekly column, ‘Great Gray Acquires RPAG,’ for further insights.
