Empower Retirement acquires Private Capital in billion-dollar deal

Empower Retirement acquires Personal Capital in billion-dollar deal

Empower Retirement, the Greenwood Village monetary agency with its title on Mile Excessive Stadium, has made a significant acquisition to fill out its roster.

Courtesy of Empower Retirement

Ed Murphy

The corporate introduced Monday that it might purchase Private Capital, a digital wealth administration agency, for as much as $1 billion. The value contains $825 million on closing later this yr and as much as $175 million if Private Capital can hit undisclosed development targets.

The acquisition will permit Empower plan contributors and particular person buyers to acquire a extra full image of their monetary holdings, entry digital private finance instruments, and obtain personalized recommendation, the corporate stated.

Longer-term, the mix ought to permit Empower to retain extra plan contributors as prospects after they retire.

“The acquisition of Private Capital and the combination of their instruments and capabilities into the Empower providing is designed to create a best-of-breed platform — powered by digital and human recommendation — to assist people obtain their monetary objectives,” Edmund Murphy III, president and CEO of Empower, stated in a press launch.

Private Capital, based in 2009, has 2.5 million customers on its monetary know-how platform and manages greater than $12 billion in property. In August 2013, the Bay Space firm made Denver the hub of its monetary advisory enterprise.

Of Private Capital’s 406 workers, 159 are situated within the Denver space, stated spokeswoman Porter Gale.

Jay Shah, CEO of Private Capital, will function president of the rebranded “Private Capital, an Empower Firm” and report back to Murphy.

Empower is the nation’s second-largest retirement companies supplier, administering $656 billion in property throughout about 40,000 office financial savings plans with 9.7 million contributors. It additionally administers 135,000 IRA and brokerage accounts with $13 billion in property.

The corporate, fashioned in 2014, has largely operated out of the general public highlight till final September, when it secured the naming rights for the Denver Broncos’ stadium, filling a void left after Sports activities Authority went bankrupt. The naming rights settlement is ready to run by means of the 2039 soccer season.

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