NewSpring Holdings, a private equity firm in Radnor, Pennsylvania, has inked an agreement to acquire Wealthcare Capital Management. No financial terms were disclosed. As a result of the transaction, David B. Loeper, founder and current chairman and CEO of Wealthcare, will retire. Len Reinhart will become the executive chairman of Wealthcare upon closing of the deal, which is expected in December 2013. Based in Richmond, Virginia, Wealthcare is a provider of wealth management technology and advisory services.
RICHMOND, Va.–(BUSINESS WIRE)–Wealthcare Capital Management, Inc. (“Wealthcare”) announces today the signing of a definitive merger agreement in which the Company will be acquired by NewSpring Holdings LLC, (“NewSpring”) a private equity investment company located in Radnor, Pennsylvania. Wealthcare, a pioneer of goals-based wealth management technology and advisory services, will run as a stand-alone company out of its existing headquarters in Richmond, Virginia. In its partnership with NewSpring, Wealthcare will retain its core group of employees dedicated to advisor relations, its trusted operating and service structure, and its successful goals-based financial planning and wealth management services for advisors and their clients. With NewSpring, Wealthcare will build on and enhance its proven history of helping advisors and their clients together achieve the lifelong financial goals they value most while minimizing taxes and fees.
Founded in 1999, Wealthcare is a pioneer of goals-based wealth management technology. Today, the Company operates its technology licensing business serving the clients of over 30,000 advisors who are affiliated with both independent financial services and Fortune 500 companies. The wealth management technology licensees service an estimated $200 billion in assets under their administration (AUA). Wealthcare also acts as a registered investment advisor overseeing more than $800 million in assets under management (AUM) for clients in 35 states through its network of financial advisors or third-party financial advisory firms. Wealthcare’s businesses feature:
Financeware financial planning software solutions, featuring the patented Comfort Zone® methodology.
Wealthcare’s integrated end-to-end RIA turnkey asset management (TAMP) practice which is one of the first true Unified Managed Household platforms (UMH).
Featuring its patented Comfort Zone® methodology for advisors and their clients, Wealthcare plans to accelerate the growth of its unique goals-based financial planning and investment advisory solutions. Key growth priorities going forward include: growing the Company’s talent pool, enhancing the web and mobile experience and expanding its network of advisor relationships.
With this new partnership, David B. Loeper, the Founder and current Chairman & CEO of Wealthcare has announced his retirement. “I have a history of creating unique business models in our industry and eventually passing the baton to others who have the know-how to scale those businesses,” said Mr. Loeper. “Wealthcare is my greatest creation and it needs to be in the hands of the most conscientious and caring advisors to help more clients attain their financial goals. Now is the time for the Company to spread its wings.”
Effective immediately upon closing — expected in December 2013 — Len Reinhart will become the Executive Chairman of the Company. Mr. Reinhart was the President of Smith Barney’s Consulting Group, the Founder and CEO of the Lockwood family of Companies and subsequently became the CEO of Pershing Managed Account Solutions, a division of Bank of New York Mellon.
“I’ve been involved with Wealthcare since its inception in 1999 and more recently as a Board Director,” said Mr. Reinhart. “Dave Loeper pioneered the concept of Management by Objective a decade ago, before it became the buzzword of the financial services industry. Wealthcare is well-positioned to lead the industry through this next major sea change in its evolution and I’m thrilled to be leading the way.”
Joining Mr. Reinhart is Michael Ashker, who will be replacing Dave Loeper as CEO of Wealthcare. Mr. Ashker is a long time entrepreneur with a history of cultivating high-growth, platform-based businesses. Most notably, Mr. Ashker founded and was CEO of Healthaxis, the first digital insurance agency, which he took public and also was co-founder of an electronic legal filing system known as JusticeLink which was sold to Lexis Nexis. Mr. Ashker also has a 15-year history working in the financial services industry.
“Our industry is changing and Wealthcare is perfectly positioned to accelerate and expand its leadership of goals-based wealth management,” said Mr. Ashker. “We are very passionate about the future of Wealthcare.”
Wealthcare remains firmly committed to providing its advisors with its proprietary planning and investment platform that is built on the singular principle of doing what is right for their clients to earn and keep their trust.
“All of us at Wealthcare pay tribute to Dave for his extraordinary vision, leadership and years of dedicated service to Wealthcare and its employees,” said Mr. Ashker. “Dave leaves an important legacy with us. The breakthrough concepts he invented on goals-based financial planning and investing in 1999 are just now finding their way into the mainstream”.
About Wealthcare Capital Management
Based in Richmond, Virginia, Wealthcare Capital Management is powering the future of financial advising through a unique suite of asset management and advising services. Wealthcare’s patented, goal-based advising approach allows advisors to give their clients measurable confidence in exceeding their goals without unnecessary sacrifice to their lifestyle, while avoiding undue investment risk. This process has been made available to third party advisors and financial advisory firms in an all-inclusive, low-cost and highly tax-efficient Unified Managed Household (UMH) program. Information about the Company’s advisory services is available online at www.wealthcarecapital.com. Founded in 1999, the Company is privately held.
About NewSpring Holdings, LLC
NewSpring Holdings, LLC, based in Radnor, PA, focuses on control buyouts and platform builds, targeting profitable, growing companies between $5 and $25 million of revenue in software, tech-enabled services and niche manufacturing sectors. In particular, NewSpring Holdings seeks to partner with family and founder-owned businesses in transition or who need a financial partner to better assist them in achieving their goals. NewSpring Holdings is part of the NewSpring Capital family of funds; a leading provider of private equity capital focused in the Mid-Atlantic region with over $950 million of assets under management. NewSpring Capital combines deep operating knowledge with financial and investing expertise to provide growing companies the financial resources, advice, network of contacts and strategic partnerships necessary to be successful. To learn more about NewSpring Capital, please visit www.newspringcapital.com.