Lincoln Financial to offload wealth management business
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A financial services company originally founded in Fort Wayne, which still has a major presence in the city, is selling its wealth management business. Lincoln Financial Group says the deal with Phoenix-based Osaic Inc. is expected to provide $700 million in capital for Lincoln upon closing.
Lincoln Financial, now headquartered in Radnor, Pennsylvania, says the sale includes its two independent broker-dealer and registered investment advisory firms, Lincoln Financial Advisors Corp. and Lincoln Financial Securities Corp.
The two entities have a national network of about 1,450 financial professionals, though it was not stated if any jobs would be affected by the sale. However, Lincoln’s home-office employees who support the wealth management business will transition to Osaic.
Lincoln Financial said it plans to use the proceeds of the sale primarily to “increase the company’s risk-based ratio” and also “reduce its leverage ratio.”
CEO Ellen Cooper said the company will continue to focus on growing its individual insurance solutions and workplace solutions businesses.
“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,” Cooper said. “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.”
The sale is expected to close in the first half of 2024, pending regulatory approvals and customary closing conditions.
Lincoln Financial is the parent of The Lincoln National Life Insurance Co., which is still based in Fort Wayne. Our partners at WPTA-TV reported the parent company employs about 2,000 people in the city, and those employees received a letter informing them of the sale. It was not clear how the deal would affected those workers.