Lincoln Financial to sell wealth management business
Lincoln Financial Group has signed a stock purchase agreement with Osaic, one of the nation’s largest providers of wealth management solutions, which will acquire Lincoln’s wealth management business, including all ownership interests in the Lincoln subsidiary entities comprising that business.
The transaction is expected to provide approximately $700 million of capital benefit to Lincoln upon closing, which is anticipated to be used primarily to increase the company’s risk-based capital ratio. Lincoln also plans to use a portion of the capital benefit to reduce its leverage ratio. The transaction is expected to close in the first half of 2024, subject to customary closing conditions, including regulatory approvals.
The transaction will include the sale to Osaic of Lincoln Financial Advisors Corporation and Lincoln Financial Securities Corporation – the company’s two independent broker-dealer and registered investment advisory firms. Together, these entities comprise a national network of approximately 1,450 financial professionals. Additionally, Lincoln’s home-office employees who support the wealth management business will transition to Osaic to continue to lead and support the business.
Lincoln will retain all aspects of Lincoln Financial Distributors, its industry-leading wholesale distribution franchise, which drives organic growth across Lincoln’s distinct retail product value propositions through a broad distribution network. Lincoln will also retain its channel of independent agents, which will now be part of LFD. Additionally, as part of the transaction, LFD will further expand its strong distribution relationship with Osaic, including the network of financial professionals that will transition as part of this transaction, and Osaic’s broader financial professional network.
“As we look ahead, we will continue to focus on growing our individual insurance solutions and workplace solutions businesses and leveraging our core strengths, including our distribution leadership and strong brand, to deliver future value for all of our stakeholders. We are pleased to have found a strong long-term home for Lincoln’s wealth management business, and we believe this transaction will greatly benefit this national network of financial professionals who deliver invaluable services for their clients each and every day. We look forward to our continued partnership with our colleagues who will join Osaic, and together, we will ensure continuity and support a smooth and seamless transition.” – Ellen Cooper, chairman, president and CEO of Lincoln Financial Group.
“We’re excited to welcome Lincoln Wealth’s impressive leadership team, financial professionals and dedicated employees to Osaic. This transaction was driven by the strong partnership between Osaic and Lincoln Financial Group which will continue into the future. The cultural alignment between Lincoln Wealth and Osaic makes this a natural fit and we look forward to continuing to serve this network of financial professionals with the strong culture of community and development they have built.” – Jamie Price, CEO of Osaic.
