Another recordkeeper acquisition was announced today by Memphis, Tenn.-based American Trust, itself a full-service provider of retirement solutions to small- and mid-sized plan sponsors.
American Trust Company has signed a definitive agreement to acquire Denver-based LT Trust Company. LT Trust is a full-service retirement plan provider, offering recordkeeping, trust, and custodial services to financial intermediaries and their clients. LT Trust has a long history of successfully partnering with both individual plan advisors as well as large institutions on an outsourced basis.
American Trust said in a statement that the acquisition, which remains subject to customary regulatory approvals, will add significant talent and technology, expand American Trust’s operational capabilities for institutional outsourcing, and establish a greater presence in the Midwest and Western U.S.
LT Trust provides its open architecture 401k recordkeeping and other administrative plan solutions to over 4,300 plans and 100,000 participants, across all 50 states. Chairman and CEO Bob Beriault will continue as a consultant to American Trust, as well as a shareholder, and LT Trust’s approximately 100 employees will all join American Trust at the close of the transaction.
“LT Trust shares our deep commitment to advisor success, evident through the development of their advanced technology platforms and effective experience-driven solutions,” said Micah DiSalvo, Chief Revenue Officer at American Trust. “In addition, LT Trust has extensive experience in the institutional outsourcing space, allowing greater flexibility for participants and plan sponsors, while uniting various players across the industry with the shared goal of improving outcomes for participants. We are eager to leverage that expertise to further amplify the industry impact.”
“It is more important than ever to be innovative and technology-focused to succeed in today’s retirement landscape,” added Beriault. “American Trust is recognized for the commitment it’s made to the retirement space, consistently innovating and growing to better serve its clients throughout the retirement ecosystem. We are excited to join the team and provide additional technology, services and resources to our collective clients.”
This is American Trust’s third strategic acquisition in the past 12 months and represents a continuation of the company’s rapid growth trajectory. In early May, American Trust took over Greensboro, N.C.-based Stanley Benefit Services, Inc., an independent employee benefits consulting firm specializing in retirement plan administration.
Following the closing of the LT Trust transaction, American Trust and its affiliates will support over $125 billion of total retirement assets under advisement, management or custody. The company has offices in Dubuque, Iowa, Memphis, Tenn., Lexington, Ky., and Greensboro, N.C.
The acquisition strategy supports the firm’s objectives of delivering comprehensive services to financial institutions and intermediaries and supporting improved retirement outcomes for participants. American Trust is a subsidiary of EdgeCo Holdings, a leading provider of technology-enabled solutions to financial intermediaries and their clients.
“Our growth trajectory is centered on the objective of providing enhanced services, solutions and tools to our clients throughout the financial services space,” said John Moody, Chief Executive Officer of EdgeCo Holdings. “The deal with LT Trust is an example of this philosophy in action, allowing us the opportunity to expand our offerings to 401k plan sponsors and participants, refine our relationships with valuable partners on the institutional level, and add a wealth of talent to our team. I am excited to welcome everyone from the LT organization into our family.”
SEE ALSO:
- Deal Expands American Trust Retirement’s Mid-Sized Plan Presence
- American Trust Partners with TAG Resources to Launch PEP
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
