RICHMOND, Va., June 29 /PRNewswire-FirstCall/ -- Genworth Financial
(NYSE: GNW) announced today it has agreed to acquire AssetMark Investment
Services, Inc., a leading provider of open architecture asset management
solutions to independent financial advisors, with more than $8 billion in
assets under management.
Under terms of the agreement, Genworth will pay $230 million for AssetMark
at closing, with additional performance-based payments of up to $110 million
over five years.
"We are thrilled to be able to team up with AssetMark, with its
leading-edge managed accounts and client management services," said Pam
Schutz, president and chief executive officer of Genworth's Retirement Income
and Investment business. "AssetMark is an excellent fit with Genworth
Financial Asset Management (GFAM) and will triple our assets under management
in the rapidly growing fee-based managed money space. Each organization brings
complementary asset advisory strengths to the equation as well -- GFAM in its
separate account business and AssetMark in the growing mutual fund advisory
services arena."
Ronald D. Cordes, Brian R. O'Toole and Richard E. Steiny founded AssetMark
in 1996. They have worked together for more than 25 years in the investment
advisory industry, and will retain key leadership positions.
Cordes will be chairman of the combined organization. Gurinder S.
Ahluwalia of Genworth Financial will be vice chairman. O'Toole and Steiny
will be CEO and president, respectively.
Ahluwalia is president of GFAM and leads Genworth's independent
broker-dealer annuity sales division; he has held leadership positions within
Genworth and its predecessor companies since 1997.
"We believe our new combination with Genworth will deliver great benefits
to our advisor and broker-dealer clients," said Cordes. "By partnering with
an organization that appreciates innovation, creative thinking and an
unwavering focus on client service, we are building an even stronger
foundation from which to offer an expanded array of services to assist
advisors in building and growing their businesses."
AssetMark and GFAM combined will have more than $12 billion in assets
under management and relationships with about 4,000 independent advisors. The
transaction is expected to close in the fourth quarter.
GFAM, based in Encino, and AssetMark, based in Pleasant Hill, California
are both leading providers of managed account services on an outsourced basis
to independent financial advisors. AssetMark additionally has developed an
extensive array of client relationship management tools and business
development programs and services to help advisors grow their businesses
efficiently and profitably.
"This acquisition is consistent with our strategy to expand in the growing
managed money and retirement income markets through independent advisors,"
Schutz said, "and we can bring an even greater level of asset management
capabilities, product innovation, wealth management and broad back-office
capabilities to the independent advisor community."
"AssetMark is well known throughout the industry for its open-architecture
investment solutions, innovative practice management and business development
programs," said Ahluwalia. "We are pleased to be able to bring those extensive
resources to our advisor base."
AssetMark received financial advice in this transaction from Putnam Lovell
NBF Securities Inc. and legal advice from Sullivan & Cromwell LLP.
About Genworth Financial
Genworth is a leading insurance holding company, serving the lifestyle
protection, retirement income, investment and mortgage insurance needs of more
than 15 million customers, and has operations in 24 countries, including the
United States, Australia, Canada, Japan, Mexico, New Zealand, the United
Kingdom and 17 other European countries. For more information, visit
http://www.genworth.com.
Caution Concerning Forward-Looking Statements
This release includes certain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements include, but are not limited to, the company's
plans, objectives, expectations, intentions and other statements contained in
this release that are not historical facts, as well as statements identified
by words such as "expects," "anticipates," "intends," "plans," "believes,"
"seeks," "estimates," or words of similar meaning. These statements are based
on the company's current beliefs or expectations and are inherently subject to
significant uncertainties and changes in circumstances, many of which are
beyond the company's control. Actual results may differ materially from these
expectations due to changes in global political, economic, business,
competitive, market and regulatory factors.
SOURCE Genworth Financial
CONTACT: Investors: Alicia Charity of Genworth, +1-804-662-2248,
Alicia.Charity@genworth.com; or
Media: Anna Gauthier, APR of Genworth,
+1-804-289-3740,
Anna.Gauthier@genworth.com, or
Ken Bakar, Director of
Marketing of AssetMark, +1-925-521-2214,
kbakar@assetmark.com
