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Insurance company
said it has agreed to sell its wealth management business to Osaic.
Lincoln’s wealth management unit, Lincoln Wealth, has approximately 1,450 advisors, who oversee approximately $71 billion in assets under advisement and $38 billion in assets under management. The deal includes Lincoln Financial Advisors and Lincoln Financial Securities, both of which are dually registered broker-dealers and investment advisor firms.
Lincoln said the deal, which the companies expect to close in the first half of 2024, would provide it with $700 million of “capital benefit.”
Osaic’s acquisition is the latest instance of consolidation in the broker-dealer sector, which has seen several insurance companies exit in recent years due to rising technology and compliance costs. For instance, Securian Financial sold its wealth management business to Cetera Financial Group this year.
It’s also a big get for Osaic, a wealth management company owned by private-equity firm Reverence Capital Partners. Osaic has more than 10,500 financial professionals.
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Earlier this year the Phoenix-based company rebranded itself. It was previously called Advisor Group. It’s also working to combine its network of eight broker-dealers into one.
Osaic said Lincoln Wealth, its leadership team led by President David Berkowitz, and its employees will join Osaic intact as a stand-alone entity following the completion of the transaction. It will be integrated into Osaic over time.
“We are committed to driving a seamless transition experience and continued business growth for Lincoln Wealth’s financial advisors,” Osaic CEO Jamie Price said in a statement.
Berkowitz said Lincoln’s advisors would benefit from Osaic’s resources and focus on the wealth management business.
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As part of the Osaic deal, Lincoln Financial said it will expand its distribution relationship with Osaic. The Radnor, Pa.-based insurer also said it would retain Lincoln Financial Distributors, its wholesale distribution franchise, as well as its channel of independent agents.
“As we look ahead, we will continue to focus on growing our individual insurance solutions and workplace solutions businesses and leveraging our core strengths, including our distribution leadership and strong brand, to deliver future value for all of our stakeholders,” said Ellen Cooper, chairman and CEO of Lincoln Financial Group.
Lincoln founded its wealth management business in 1969.
Write to Andrew Welsch at andrew.welsch@barrons.com
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