Empower Personal Wealth Division Mulls RIA Acquisitions

Core Insights - Empower, the second-largest retirement plan provider in the U.S., is exploring potential acquisitions of Registered Investment Advisors (RIAs) to enhance its personal wealth division [1][3] - The personal wealth division has grown significantly, reaching $100 billion in client assets, with a 25% compound annual growth rate since its establishment in January 2023 [3][4] - CEO Ed Murphy indicated that while the company is currently focused on organic growth, it sees future acquisition opportunities to improve distribution and compete in the high-net-worth market [4][6] Company Growth and Strategy - Empower Personal Wealth has approximately 1,000 financial advisors and has expanded through organic client acquisition from its retirement plan business, which serves around 19 million participants and manages nearly $1.8 trillion in assets [2][3] - The firm’s wealth focus began five years ago with the acquisition of RIA Personal Capital for about $1 billion, marking a strategic entry into the wealth management space [3][4] - Empower has a history of mergers and acquisitions, having built its retirement base through acquiring large recordkeeping businesses from major firms like J.P. Morgan and Prudential [4][5] Acquisition Criteria - In pursuing RIA acquisitions, Empower seeks not only advisor talent and a national presence but also a management team experienced in the high-net-worth market [6] - The company aims to enhance its existing advisor force and distribution capabilities through strategic acquisitions, differentiating this approach from its previous workplace transitions [6]