The nation’s second-largest retirement plan record keeper is working to expand its technology offerings.
Founded in 2014, Empower Retirement administers $583 billion in assets for more than 9.6 million retirement plan participants. The company has annually grown at more than twice the rate of the industry average, due in large part to its integrated financial technology tools.
Empower is now working to bolster those tech offerings with the recent announcement that it is acquiring Personal Capital, a digital-first registered investment adviser and wealth manager with award-winning financial tools. Since its founding in 2009, Personal Capital has added over 2.5 million users to its platform, tracking over $771 billion of household assets. Earlier this year, it revealed it had surpassed $850 billion in assets tracked on the platform with over 50 percent growth in AUM in the past year.
The partnership will combine Empower’s retirement plan services and integrated financial tools with Personal Capital’s digitally oriented personal wealth management platform. Retirement plan participants and individual investors will be able to see a complete financial picture, as well as manage their progress toward financial goals.
Personal Capital currently employs over 400 people and has offices across the U.S. in Atlanta, Denver, Dallas, and San Francisco. In February, the company announced that it was expanding its Investment Committee with five additional members.
After the close of the transaction, Personal Capital will be branded as “Personal Capital, an Empower Company.” Personal Capital CEO Jay Shah will serve as President of Personal Capital, reporting to Empower President and CEO Edmund F. Murphy III, and will be a member of its executive team. A joint team from both firms will work together to integrate the Personal Capital and Empower offerings.
The transaction is expected to close in the second half of 2020.
“Empower and Personal Capital are joining forces to take the next step forward in the evolution of an integrated platform to deliver personalized advice, financial wellness and comprehensive financial planning to millions of individual investors and retirement plan participants,” Murphy said in a statement.