Empower keeps growing but what does it mean for advisors?

investmentnews.com:

Last week, Empower wrapped up its integration of the $314 billion retirement plan business it bought from Prudential, capping an acquisition tear that it’s been on since the company formed a decade ago.

It might not be long before it makes another deal. The company, which two years ago dropped “Retirement” from its name, has been busy building up a wealth management business, and it has ambitions to expand in the small-401(k) business that many in the industry see as the next big area of growth.

“We’ll continue to be opportunistic where it makes sense,” said Edmund F. Murphy III, president and CEO of Empower.

Acquisitions that would significantly add to the company’s scale, give it new capabilities, and provide staff with expertise area ideal, he said, citing the 2020 deal to buy Personal Capital as an example that meets those criteria.  

“Ideally if they can meet all three objectives, then that’s definitely the type of opportunity we’d like to pursue,” he said.

Empower, which is owned by Power Corp. of Canada, is a prime example of the consolidation happening in the retirement plan business. The company itself is the result of three businesses combining in 2014, as Great-West Financial merged its plan unit with that of then-affiliate Putnam Investments and the large plan operation of J.P. Morgan, which it had just acquired. As a result, it had more than $400 billion in assets under administration rocketed to being the second-biggest retirement plan provider by number of participants, at nearly 7 million, trailing Fidelity.

Since then, Empower has bought retirement plan businesses from Fifth Third, MassMutual, Truist, and Prudential. Across its retirement plan and wealth businesses, the company now administers about $1.6