Simplicity Group has announced the acquisition of Minneapolis-based Sawtooth Solutions, LLC, a leading provider of unified managed account investment solutions to independent wealth advisors.
Sawtooth provides access to hundreds of leading third-party asset managers, equipping advisors with model investment portfolios for all ranges of wealth, from the mass affluent to the high net worth. As a tech-enabled platform, Sawtooth delivers institutional-quality operating services to clients ranging from individual wealth advisors to large banks and broker-dealers. Sawtooth's scale and reach will be enhanced as it will now be available through the entire Simplicity distribution network.
"We are thrilled to announce our new partnership with Sawtooth," said Bruce Donaldson, President and CEO of Simplicity. "Sawtooth's proven expertise and approach to delivering outsourced investment management services to the independent advisory space is a terrific fit with what Simplicity envisions for the future of wealth management. As an integrated firm, we are uniquely positioned to help financial advisors address the risks that consumers face in today's market. Together, our businesses will establish a new paradigm for empowering trusted advisors."
Brad Pries, CEO of Sawtooth commented, "Simplicity's resources are extensive and through disruptive innovation, we will advance the capability of our advisors to help them meet the ever-increasing demands of their clientele. With access to Simplicity's expertise, capital, and talent, we can execute on best ideas to drive growth for the combined firms."
Sawtooth, which will adopt the Simplicity brand, will continue to serve all its existing clients and a new base of advisors in the Simplicity distribution network.
"I know Brad and the team had many different opportunities to grow their business," said Bruce Donaldson "and I am thrilled that they chose to join the Simplicity Group as we build the market-leading financial products distribution business."
Specific financial terms of the transaction were not disclosed. Sawtooth reported roughly $17.5 billion in assets under management in its most recent Form ADV.
The firm specializes in constructing unified managed accounts (UMAs) for financial advisors who wish to outsource their investment management to a third party. UMAs can include multiple investment strategies and themes at once, as opposed to separately managed accounts (SMAs), which focus on a single strategy.
‘Simplicity’s resources are extensive and through disruptive innovation, we will advance the capability of our advisors to help them meet the ever-increasing demands of their clientele,’ stated Brad Pries, Sawtooth’s chief executive. ‘With access to Simplicity’s expertise, capital, and talent, we can execute on best ideas to drive growth for the combined firms.’
Sawtooth had been trying to sell itself for over a year. Citywire reported in August of 2020 that Sawtooth had hired Echelon Partners to serve as its investment banker. At the time, it was thought that smaller advisors who kept their assets with TD Ameritrade comprised a large part of the business and TD’s merger with Charles Schwab could affect those relationships.
