Carson Group Strikes Its Largest Deal Yet

What You Need to Know

Northwest Capital Management, with $5 billion in AUM, specializes in retirement plan services.
The strategic equity deal expands and solidifies the company's move into the retirement plan services space.
In January, Carson and Vestwell announced the launch of a retirement plan advisory solution, the Carson Complete 401(k).

Carson Group on Wednesday announced its largest deal to date: an equity partnership deal with RIA Northwest Capital Management that Carson said expands and “solidifies” its move into retirement plan services while also expanding its wealth management footprint in the Northwest U.S.

Expansion of wealth management firms into retirement plan services is a growing trend, according to Carson.

NWCM is a retirement and investment-focused firm that specializes in wealth management services for individuals and retirement plan services for plan sponsors and their participants. The firm was founded in 1998 in Portland, Oregon, as an independent and privately held investment advisory firm and has since grown to a team of 13 with more than $5 billion in assets under management.

In January, Carson and Vestwell announced the launch of a retirement plan advisory solution, the Carson Complete 401(k), designed to help Carson advisors grow their small and mid-market 401(k) and 403(b) plan practices.

Carson has also built up its retirement plan offerings and its ability to offer holistic planning through recent strategic partnerships with BOK Financial Advisor Trust Services and Trust & Will, along with several recent strategic hires, the company noted.

Part of the ‘Strategic Puzzle’

“With more clients seeking holistic planning solutions, our partnership with NWCM is another part of the strategic puzzle that will allow us to better compete in the retirement planning space,” Jamie Hopkins, managing partner of wealth solutions for Carson Group, said in a statement.

“The team at NWCM has spent the last three decades building a tremendous business,” he said. We are excited to learn from them and continue to build on the value we can bring to the table.”

Hopkins added, “This partnership will give NWCM access to Carson’s ecosystem of cutting-edge technology and investment offerings, paired with expanded resources, [and] the NWCM team will have what they need to run more efficiently and continue to grow.”

‘Not an Easy Space’

The deal closed last week, and the transaction was “100% acquisition,” although there was “some equity swap” with NWCM’s owners, Hopkins told ThinkAdvisor. Financial terms were not disclosed.

Not all advisors and advisory firms need to move into the retirement plan space, Hopkins said. But he explained: ”I think it’s a smart move because this is where Americans are saving. Go to where clients and their complexities are.”

NWCM Benefits

The NWCM team will continue to be led by managing director, partner and senior investment advisor Brent Petty and senior investment advisor Fred Payne Jr., with office locations in Portland and Seattle, Carson Group said.

The partnership will give Northwest Capital Management “enhanced resources and expanded capacity, along with access to Carson’s leading investments platform,” the companies said in a statement. “This will help support NWCM’s client base and provide retirement plan participants with experienced insights on legislation and regulations, elevating the level of expertise and service they receive.”

“Our affiliation with Carson will allow us to expand our resources considerably, gaining a larger support staff for client service, financial planning, investment research, portfolio analysis, trading and investment monitoring,” Petty said, adding that the deal would also “broaden our depth of compliance and regulatory support.”

The companies pointed to a recent study conducted by PricewaterhouseCoopers that indicated 60% of investors want their advisors to offer holistic advice that covers their entire financial picture, including budgeting, debt management, tax planning, retirement planning and estate planning.

Carson Group now manages $28.2 billion in assets and serves more than 46,000 families among its advisory network of over 140 partner offices, it said.