West Des Moines, Iowa-based Sammons Financial Group announced Tuesday that it agreed with NewSpring Holdings to acquire Wealthcare Capital Management, an RIA that manages $8 billion in client assets with offices in Philadelphia and Richmond, Virginia.
“Wealthcare is grateful to NewSpring Holdings for its decade-long partnership, which has successfully fueled our growth,” said Matt Regan, President and CEO of Wealthcare.
The acquisition “aligns perfectly with the long-term vision for both organizations,” according to Regan. “For Wealthcare, it will provide the capital to accelerate the execution of our growth strategy as a leading destination for financial advisors while
enabling Sammons Financial Group to expand further in the wealth management space.”
“We are excited by the breadth and scale of services Wealthcare offers,” said Esfand Dinshaw, CEO of Sammons. “We look forward to adding the Wealthcare team and its 60+ employees to Sammons Financial Group as we expand our growth in the independent financial advisor space.”
“We are working toward a target of July 1 to close, following all regulatory requirements and client notifications,” a Sammons spokesperson told WSR. “We feel our two companies complement each other nicely and the leadership teams expect growth opportunities and synergies will emerge over time.”
He added: “Sammons Financial Group is focused on strategic growth in the wealth management space. We are well capitalized, employee owned, and always open to conversations with potential partners.”
Sammons purchased Dayton, Ohio-based Beacon Capital Management in 2021, the spokesperson noted. “That was our entry into the wealth management channel as an expansion to our life insurance, annuity, and retirement planning businesses.”
He continued, “Expanding into wealth management is part of our long-term plan and a natural fit. By growing into the wealth management space, we can broaden our core offerings and agent, advisor, distribution partner, and client services. We actively seek companies with shared values, culture, and complementary service offerings.”
Sammons’ last wealth management acquisition before Wealthcare was Minneapolis-based NorthRock Partners in fall 2023, he pointed out.
Berkshire Global Advisors and Gibson, Dunn & Crutcher represented Sammons, while Republic Capital Group and Blank Rome represented Wealthcare and NewSpring in the deal.
Wealthcare has almost 200 affiliated independent advisors.
Jeff Berman, Contributing Editor and Reporter at Wealth Solutions Report, can be reached at jeff.berman@wealthsolutionsreport.com.
