Genworth to Acquire AssetMark Investment

Genworth Financial has signed an agreement to acquire AssetMark Investment Services, another separately managed account adviser that sells through independent financial advisers, for $230 million at closing and an additional $110 million a year for five years, provided certain requirements are met, for a potential total of $780 million. The deal is expected to close in the fourth quarter.

Combined, the firm will have more than $12 billion in assets under management and relationships with 4,000 advisers. AssetMark currently has $8 billion under management.

Ronald D. Cordes, one of the founders of AssetMark, will become chairman of the merged company, and Gurinder S. Ahluwalia of Genworth Financial will be vice chairman. Brian O'Toole and Richard E. Steiny, the other two founders of AssetMark, will become chief executive officer and president, respectively.

"We are thrilled to be able to team up with AssetMark, with its leading-edge managed accounts and client management services," said Pam Schutz, president and CEO of Genworth's retirement income and investment business. "AssetMark is an excellent fit with Genworth and will tripe our assets under management in the rapidly growing fee-based managed money space."