AssetMark (AMK) & Morningstar Wealth Form Strategic Alliance

Group 1: Strategic Alliance - AssetMark Financial Holdings Inc. has entered into a strategic coalition with Morningstar Wealth, acquiring approximately $12 billion in assets from Morningstar Wealth's Turnkey Asset Management Platform (TAMP) [1] - The transaction is expected to close in the second half of 2024, pending regulatory approvals [1] - This partnership will allow AssetMark's financial advisors access to a wide range of model portfolios and separately managed accounts, enhancing their service offerings [2] Group 2: Leadership Statements - Michael Kim, CEO of AssetMark, emphasized that this relationship represents a strategic alignment of best-in-class firms to provide innovative solutions and high-quality service [2] - Daniel Needham, president of Morningstar Wealth, stated that the collaboration aims to combine unique capabilities to better serve investors [2] Group 3: Growth Strategy - The move aligns with AssetMark's organic growth strategy, focusing on competitive and diversified strategies, while also engaging in opportunistic buyouts [2] - AssetMark has a history of successful acquisitions, including Adhesion Wealth Advisor Solutions Inc. in 2022, which added $6.9 billion in platform assets [3] - Over the past six months, AssetMark's shares have increased by 17.2%, outperforming the industry growth of 8.6% [3]