Beacon Capital Management (VIP Messenger) has been acquired by Sammons Financial Group, a diversified financial services organization with a long history of leadership in the retirement marketplace. Beacon president and chief investment officer, Chris Cook, will continue to lead the firm through its growth initiatives while turning operational responsibilities over to the now-parent organization. This move allows for Cook to enhance focus on advisors and their clients, along with expanding support capabilities to allow for advisors to more efficiently, effectively and broadly serve their clients.
Beacon Capital Management, a next-generation registered investment adviser (RIA) firm and turnkey asset management program (TAMP), is dedicated to fundamentally improving the science of investing for fee-based financial advisors and institutions, and the clients they serve. Founded in 2000, Beacon Capital Management provides long-term investors with portfolio management solutions focused on capturing market gains while limiting losses from inherent market volatility via its proprietary stop-loss strategy. As of December 31, 2020, the company manages more than $3 billion.
“This combination is a win-win, as both Beacon Capital Management and Sammons Financial Group have similar retirement income philosophies. Combined, our strong product offerings work together to help clients build a comprehensive retirement strategy – from insurance through investment,” said Cook. “I look forward to focusing on Beacon’s continued growth, while simultaneously investing more time in doing what I love – meeting with advisors and delivering value to clients.”
For Sammons Financial Group, the acquisition is a strategic move to further expand into the RIA marketplace. With more than $114 billion in (GAAP) assets, Sammons Financial Group is a diversified financial services organization with a long history of leadership in the life insurance and retirement marketplace. The company emerged from 2020 with more than $10 billion in total insurance premiums.
“Sammons Financial Group has a long track record of success in organic growth in its financial services offerings. That focus will only continue as the addition of Beacon Capital Management will accelerate our efforts in the RIA channel,” said Esfand Dinshaw, chief executive officer, Sammons Financial Group. “This move complements our existing business lines and our work to build partnerships with other registered investment advisors.”
Beacon Capital Management will continue to operate as it currently does in serving its advisors and clients, now with the backing of a strong market leader. Long term, the transition into Sammons Financial Group offers the opportunity for Beacon Capital Management to expand in its core market with the operational infrastructure and support of Sammons Financial Group’s 1,600 employees.
“The purchase allows Sammons Financial Group to further grow into a specific retirement market segment – one that aligns well with our current business model in life insurance, annuities, and retirement planning solutions,” said Rob TeKolste, president, Sammons Independent Annuity Group.
“The retirement marketplace continues to grow. This acquisition will expand both Sammons Financial Group and Beacon product and strategy solutions for all of our financial advisors,” added Bill Lowe, president, Sammons Institutional Group.
Cook will continue to serve as president and chief investment officer of Beacon while also joining the SFG senior management team. Culturally, both companies are led by a defined set of core values that drive employee performance, industry leadership, and the building and servicing of partner and advisor relationships. The acquisition will provide Beacon with the resources necessary to build out new and more robust technology and service offerings – ranging from new account opening systems, advisor tools, and client portals.
“Our two businesses complement each other nicely, and the leadership teams feel additional growth opportunities and synergies will emerge over time,” said Dinshaw. “This is both an expansion of Sammons Financial Group’s offerings and an opportunity for Beacon to combine its strengths with our strong, stable, A+ rated lines of business.”
The acquisition is expected to close early in the second quarter 2021, pending completion of standard regulatory requirements. All Beacon employees and contract wholesalers will become part of the Sammons Financial Group family of businesses. The companies do not anticipate any changes in the investment or service experience for the clients of Beacon Capital Management or its advisors.
Berkshire Global Advisors served as the exclusive financial advisor to Sammons Financial Group for the transaction. Terms of the agreement are undisclosed.
