Wealthcare Capital Management is to be acquired by NewSpring Holdings, a private equity investment company located in Radnor, Pennsylvania.
Wealthcare, a provider of goals-based wealth management technology and advisory services, will run as a standalone 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 operating and service structure, and its goals-based financial planning and wealth management services for advisors and their clients.
Founded in 1999, Wealthcare 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 USD200bn in assets under their administration (AUA). Wealthcare also acts as a registered investment advisor overseeing more than USD800m in assets under management (AUM) for clients in 35 states through its network of financial advisors or third-party financial advisory firms.
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 and 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,” says 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 (pictured) will become the executive chairman of the company. 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,” says 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 Reinhart is Michael Ashker, who will be replacing Dave Loeper as CEO of Wealthcare. 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. Ashker also has a 15-year history working in the financial services industry.