Osaic to Buy Lincoln's Wealth Unit for $700M

Osaic, formerly Advisor Group, says it is buying broker-dealers and RIAs Lincoln Financial Advisors and Lincoln Financial Securities. The two wealth management firms are owned by Lincoln National Corp., which does business as Lincoln Financial Group.

The transaction, according to Lincoln, should provide it with some $700 million upon closing,

The deal could add about 1,450 advisors and roughly $108 billion in assets — $71 billion in assets under administration and $38 billion in assets under management — to Osaic’s 10,500-plus financial professionals and its over $500 billion in AUA. 

“We’re excited to welcome Lincoln Wealth’s impressive leadership team, financial advisors and other dedicated employees to Osaic. This acquisition was driven by the strong partnership between Osaic and Lincoln Financial Group which will continue into the future,” said Osaic CEO Jamie Price.

Lincoln’s wealth business was founded in 1969. It is led by David Berkowitz and its two wealth groups will join Osaic as stand-alone entities following the completion of the transaction, according to a press release.

“Osaic is a company we’ve come to know well. … and we believe that together, we can aid advisors’ growth in new ways,” said Berkowitz, in a statement.

Osaic is owned by Reverence Capital Partners, a financial-services focused private equity group, which is seeking to sell up to 20% of its stake in the wealth management firm, it was reported earlier this month.

Its stake in Osaic — which includes Osaic Wealth, Triad Advisors, Osaic Institutions and Woodbury Financial Services — is estimated to be worth $2.5 billion.