Sunday, July 21, 2024

Fisher Investments to Spin Out $4.75B 401(k) Business -Dlight News

Fisher Investments, a $275 billion registered investment advisor that announced plans last week to sell a minority stake in the firm, will spin out its Fisher 401(k) Solutions business into a new, independent company, the firm confirmed. The new entity will be called Fisher Retirement Solutions.

Nathan Fisher, senior executive vice president of 401(k) solutions and founder Ken Fisher’s son, will serve as CEO of the new company. Fisher’s 401(k) business has $4.75 billion in assets under management and over 100 employees, including advisors, as of June 21.

“While Fisher Investments and Fisher Retirement Solutions will be independent companies moving forward, they will be friendly, cooperative and interactive,” a Fisher spokesman said in a statement.

Fisher created its 401(k) Solutions business in 2014 to focus on the underserved small- and mid-sized retirement plan market. As of March 31, 2024, the business served over 1,600 small and medium-sized plans.

Nathan Fisher joined his father’s firm in 2005 serving in a variety of departments in addition to the 401(k) unit, including annuity evaluation, research and client services. He received an undergraduate degree from the University of California, Davis, and an MBA from the University of California, Los Angeles.

Just last week, Fisher announced it would sell a minority stake in the firm to Advent International and a subsidiary of the Abu Dhabi Investment Authority in a deal valuing the RIA at $12.75 billion. The deal is part of Ken Fisher’s estate planning, according to the company, and will let Fisher Investments continue to operate independently.

And while that valuation may raise eyebrows in the wealth management industry, investment bankers active in the space agree it’s likely a fair valuation for a firm of Fisher’s size, scale and organic growth rate.

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