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Ascensus boosts sector dominance with Vanguard acquisition

"Ascensus Vanguard Acquisition"
“Ascensus Vanguard Acquisition”

Ascensus, a significant retirement plan administrator in the United States, is set to acquire Vanguard’s business division, Which manages Individual 401(k), multi-SEP, and SIMPLE IRA Plans.

The move enhances Ascensus’s prominence in the sector, bringing the total number of retirement plans administrated by the company to nearly 280,000. Additionally, the acquisition will see Ascensus assume recordkeeping and client servicing responsibilities for these existing Vanguard retirement schemes.

As per the deal, Ascensus will offer various services, such as custodial and trustee services, recordkeeping, client services, and transaction processing. Participating investors will continue to have access to Vanguard mutual funds through the Ascensus platform.

This strategic integration remarkably amplifies Ascensus’ service offering while continuing its commitment to deliver superior-quality services that enrich the investor experience and foster long-term investment growth.

Ascensus expands services with Vanguard division acquisition

However, the deal does not disrupt other retirement solutions offered by Vanguard. The company will continue to facilitate a sole-proprietor SEP IRA for small business owners without employees. The acquired retirement plans are primarily designed for small businesses, providing affordable and practical retirement solutions.

The acquisition is set to further Ascensus’ mission of attending to the peculiar requirements of small businesses’ retirement plans, reinforcing its over 40-year history. Once the transaction is completed in the third quarter of 2024, the acquired entity will be integrated with the Ascensus Retirement business unit, enhancing the company’s services.

Both Ascensus President and Armond Mosley, Principal and Lead of Vanguard’s Self-Directed business, have expressed optimism about the deal. The acquisition offers the potential of significant benefits for plan sponsors and participants, courtesy of Ascensus’ sophisticated technology platforms that simplify plan administration.

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