Fisher Investments is spinning off its standalone 401(k) solutions division, a spokesman confirmed Tuesday.
The registered investment adviser is converting Fisher Investments 401(k) Solutions into a standalone company called Fisher Retirement Solutions, which will be run by CEO Nathan Fisher, the son of Fisher Investments founder and CEO Ken Fisher.
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Fisher Investments, which manages $275 billion in client assets for institutional and retail investors, made the move on the heels of announcing it would sell a minority stake to Advent International, a wholly owned subsidiary of the Abu Dhabi Investment Authority. The investment, which is worth at least $2.5 billion and up to $3 billion, will value the company at $12.75 billion, the company said in a June 16 announcement.
According to Naji Srinivas, executive vice president of corporate communications at Fisher Investments, the independent Fisher Retirement Services will continue to have a “friendly, collaborative and two-way” relationship with Fisher Investments.
As of last Friday, the retirement group, which has about 100 people, managed $4.75 billion in assets across more than 1,600 small and mid-size plans.
Srinivas said the move, which has been planned for years, will give Fisher full autonomy in the division where he previously held the title of senior vice president, allowing him to “move with more decisiveness and speed.”
“Nathan has realized the value of doing things his own way, on his own terms, and hopes to build FRS for himself in the same way that Ken built Fisher Investments,” Srinivas wrote.
The small plan market is expected to grow in the coming years due to federal and state mandates and a trend toward more companies of all sizes offering workplace retirement plans. In April, consulting firm Cerulli Associates projected that the 401(k) market will grow from 668,419 plans at the end of 2022 to nearly 1 million plans by 2030.
The company is “very optimistic” about the small and mid-size 401(k) plan market and the growth potential of Fisher Retirement Solutions, a spokesman said.
Fisher Investments’ Ken Fisher is selling his stake to Advent-managed funds and ADIA, according to a June 16 announcement. It marks the first outside investment for the firm, which was founded in 1979, and Advent managing partner David Musafar will join the board of directors.
News of the 401(k) unit spinoff was first reported by WealthManagement.com.
