Creative Planning’s acquisition of Lockton’s retirement division in late 2021 made significant waves in the retirement plan advisor industry. Creative Planning’s robust wealth capabilities, coupled with the friendship between the CEOs from Kansas City, raised questions about the deal’s unique nature. This acquisition, which posed a threat to Captrust’s RPA dominance, might be a sign of increasing interest in retirement plan advisory (RPA) ventures.
On a smaller scale, Carson Group’s acquisition of Northwest Capital Management, a firm with $4 billion in retirement assets, signifies the potential for further deals by RIA (Registered Investment Advisor) aggregators entering the DC business. As societal shifts impact retirement plans, such as the rise in small business plans and the convergence of wealth and retirement benefits, RIAs are increasingly drawn to the 401(k) and 403(b) world.
RIAs are recognizing the value of entering the DC market, leveraging the potential offered by DC plans to establish relationships and trust with clients. With the focus shifting from plan-level services to participant services, RIAs are poised to excel due to their understanding of these intricacies and their adeptness at leveraging technology for scalability. While RPAs have been acquiring RIA firms, the trend suggests that more RIAs will seek to acquire RPA practices, capitalizing on their inherent strengths and insights into the evolving landscape of retirement planning.
You can read more about this story in this week’s Fred Barstein’s Wealth Management article.
