June 30, 2020

Willkie represented Personal Capital in the transaction.

On June 29, Empower Retirement, one of the country’s largest retirement services providers, and Personal Capital, a digital-first registered investment adviser and wealth manager, announced that they have entered into a definitive agreement for Empower to acquire Personal Capital. Under the agreement, Empower will acquire Personal Capital for up to $1 billion in enterprise value, composed of $825 million on closing and up to $175 million for planned growth.

The combination will bring together Empower’s retirement plan services and integrated financial tools and Personal Capital’s rapidly growing, digitally oriented personal wealth management platform to offer enhanced capabilities and expanded offerings to its retirement plan participant and individual investor clients.

Empower, formed in 2014, administers $656 billion in assets on behalf of 9.7 million American workers through approximately 40,000 workplace savings plans. The nation’s second-largest retirement plan recordkeeper by total participants, Empower serves all segments of the employer-sponsored retirement plan market: government 457 plans; small, midsize and large corporate 401 (k) clients; non-profit 403 (b) entities; private-label recordkeeping clients; and IRA customers.

Since its founding in 2009, fintech company Personal Capital has added over 2.5 million users on its platform, tracking over $771 billion of household assets. Personal Capital is recognized for creating a remote-delivery digital-first wealth management platform and is among the fastest growing in its market. Personal Capital currently manages over $12 billion in assets, virtually delivered from offices across the U.S.

The Willkie team was led by partners Jeffrey Poss and Manuel Miranda and associate Thomas Sharkey.