Wealth management firm Osaic announced that it has entered into a definitive agreement to acquire Lincoln Financial’s wealth management business, including all ownership interests in the Lincoln subsidiary entities comprising that business.
The transaction will include the sale to Osaic of Lincoln Financial Advisors Corporation (LFA) and Lincoln Financial Securities Corporation (LFS)—the company’s two independent broker-dealer and registered investment advisory firms. Together, these entities comprise a national network of approximately 1,450 financial professionals, who offer holistic financial planning and advisory services to affluent clients and oversee approximately $108 billion in assets ($71 billion in AUA and $38 billion in AUM).
According to Osaic’s announcement, the acquisition has been intentionally structured to create a seamless transition for Lincoln Wealth's advisors and their clients with minimal to no repapering and no change to account numbers. Lincoln Wealth and its leadership team and employees supporting the business will join Osaic intact as stand-alone entities following the completion of the transaction, which is subject to normal regulatory approvals.
The deal is expected to close in the first half of 2024. The transaction will provide approximately $700 million of capital benefit to Lincoln upon closing, which is anticipated to be used primarily to increase the company’s risk-based capital ratio. Lincoln also plans to use a portion of the capital benefit to reduce its leverage ratio.
Lincoln National has been a strategic partner to Osaic for more than a decade and the two companies will continue to work together and expand their partnership over time, the firm notes.
“We're excited to welcome Lincoln Wealth's impressive leadership team, financial advisors and other dedicated employees to Osaic,” Jamie Price, Chief Executive Officer of Osaic, said in a statement. “The cultural alignment between Lincoln Wealth and Osaic makes this a natural fit and we look forward to continuing to serve Lincoln Wealth advisors with the strong culture of community and development they have built.”
“Osaic is a company we've come to know well,” added David Berkowitz, President for Lincoln Wealth. “They share our dedication to providing innovative solutions to the independent advisor population so that they are best supported in serving their clients, and we believe that together, we can aid advisors' growth in new ways.”
Ellen Cooper, Chairman, President and CEO of Lincoln Financial Group, noted that as her firm looks ahead they will continue to focus on growing their individual insurance solutions and workplace solutions businesses and leveraging their core strengths. “We are pleased to have found a strong long-term home for Lincoln’s wealth management business, and we believe this transaction will greatly benefit this national network of financial professionals who deliver invaluable services for their clients each and every day.”
Originally founded in 1969, Lincoln's wealth management business for more than 50 years has been providing the tools and resources independent financial professionals need to grow their business and serve their clients, the announcement further emphasizes. In 2022, as part of a targeted effort to build its wealth management brand, the firm launched “The Network Effect” campaign, reinforcing the idea that when advisors serve clients independently but with a common goal, they can have an exponential impact on their industry, on their communities, and on their clients.
As a portfolio company of Reverence Capital Partners, Osaic is one of the nation's largest providers of wealth management solutions, supporting over 10,500 financial professionals. Earlier this year, then known as the Advisor Group, the firm announced that it was changing its name and rebranding as Osaic.
