NewSpring Capital Signs Definitive Merger Agreement to Acquire Wealthcare Capital Management, Inc.
November 15, 2013
RADNOR, PA - November 14, 2013 - NewSpring Capital, a leading family of private equity funds providing growth and expansion capital, announced today that NewSpring Holdings, LLC, the firm's dedicated control buyout strategy, signed a definitive merger agreement to acquire Wealthcare Capital Management, Inc. ("Wealthcare") of Richmond, VA. The merger represents the first transaction for NewSpring Holdings, NewSpring Capital's newest investment strategy.
Founded in 1999, Wealthcare is a pioneer of goals-based wealth management technology. Today, the Company 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 $200 billion in assets under their administration (AUA). Wealthcare also acts as a registered investment advisor overseeing more than $800 million in assets under management (AUM) for clients in 35 states through its network of financial advisors or third-party financial advisory firms. Wealthcare's businesses feature:
- Financeware financial planning software solutions, featuring the patented Comfort Zone® methodology
- Wealthcare's integrated end-to-end RIA turnkey asset management (TAMP) practice which is one of the first true Unified Managed Household platforms (UMH)
Featuring its patented Comfort Zone® methodology for advisors and their clients, Wealthcare plans to accelerate the growth of its unique goals-based financial planning and investment advisory solutions. 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.
Skip Maner, General Partner of NewSpring Holdings, said, "NewSpring Holdings looks to partner with management teams of exciting companies where we think the addition of our significant operating resources can be additive to the growthequation. Wealthcare has market leading technology and a strongfoundation from which to build. Our new team brings significant experience in growing and building companies in this industry. We are excited about the successful history of achievement and hope to build to help move the Company to the next level."
Effective immediately upon closing -- expected in December 2013 -- Len Reinhart will become the Executive Chairman of the Company. Mr. 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," said Mr. 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 Mr. Reinhart is Michael Ashker, who will be replacing Dave Loeper as CEO of Wealthcare. Mr. Ashker is a long time entrepreneur with a history of cultivating high-growth, platform-based businesses. Most notably, Mr. 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. Mr. Ashker also has a 15-year history working in the financial services industry.
"Our industry is changing and Wealthcare is perfectly positioned to accelerate and expand its leadership of goals-based wealth management," said Mr. Ashker. "We are very passionate about the future of Wealthcare."
About Wealthcare Capital Management
Based in Richmond, Virginia, Wealthcare Capital Management, Inc. is powering the future of financial advising through a unique suite of asset management and advising services. Wealthcare's patented, goal-based advising approach allows advisors to give their clients measurable confidence in exceeding their goals without unnecessary sacrifice to their lifestyle while avoiding undue investment risk. This process has been made available to third party advisors and financial advisory firms in an all-inclusive, low-cost and highly tax-efficient Unified Managed Household (UMH) program. Information about the Company's advisory services is available online at www.wealthcarecapital.com. Founded in 1999, the Company is privately held.