Fisher Investments plans to spin off its 401(k) division into a separate company to be led by Nathan Fisher, son of founder Ken Fisher, a company spokesman confirmed.
The new company, Fisher Retirement Solutions, is expected to be incorporated and operational by July 1, said Naj Srinivas, Fisher's executive vice president of corporate communications. Nathan Fisher will serve as CEO.
The move came shortly after Fisher announced it was selling minority stakes in its company to private equity firm Advent International and a subsidiary of the Abu Dhabi Investment Authority, although Srinivas suggested the separation of the retirement business was unrelated to the deal.
“This was part of a separate, longer-planned initiative to give Nathan and FRS complete autonomy, enabling them to act with more decisiveness and speed,” says Srinivas. “Nathan has realized the power of doing things his own way, on his own terms, and he wants to build FRS for himself, just as Ken built Fisher Investments.”
News of the move was reported earlier by WealthManagement.com.
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The division that Fisher is spinning out will be called Fisher Investments 401(k) Solutions, which provides retirement plan advice and administration to small and medium-sized businesses. The division is ranked No. 21 on the National Association of Plan Advisors' 2024 list of top defined contribution plan advisors with multiple offices.
According to the list, Fisher's retirement business has more than 1,500 plans with more than 63,000 participants, with assets estimated at $4.07 billion.
Srinivas said Fisher's core wealth management business and Fisher Retirement Solutions would remain separate businesses, but that “it will be friendly, collaborative and two-way.”
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In its latest Form ADV regulatory filing, Fisher reported more than $235 billion in assets under management. The company announced earlier this month that Fisher Investments and its subsidiaries manage more than $275 million across three main businesses: institutional, U.S. retail and international retail clients.
The private equity deal announced this month marks the first time Fisher has sold shares in its company to an outside investor, according to the company. Ken Fisher, executive chairman and co-chief information officer, said the deal was aimed at “dual estate tax and planning objectives” while ensuring the company's culture and service model are preserved.
“I am in good health, but this transaction, with its unusually long holding period for a private equity deal, will ensure FI's long-term private independence and culture, should anything untoward happen to me,” he said.
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Fisher founded the company in 1979 and became a mainstay in the financial media, appearing regularly on Fox News, Fox Business and BBN Bloomberg, and writing extensively on investing and finance.
The company said Fisher will sell his personal shares to Advent and the Abu Dhabi sovereign wealth fund but will retain majority beneficial ownership and more than 70 percent of the voting shares.
The companies did not disclose the exact terms of the deal but said the investment was between $2.5 billion and $3 billion, valuing Fisher Investments at $12.75 billion.
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