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EdgeCo Brings Unified Trust Under its American Trust Umbrella

Business Growth Strategies

The trend of recordkeeper consolidation continues amidst the COVID-19 pandemic.

EdgeCo Holdings, L.P. has entered into a definitive agreement with Unified Trust Company, N.A. to become part of its subsidiary, American Trust CompanyUnified Trust is a national retirement plan provider and fiduciary based in Lexington, KY, serving financial intermediaries, corporate clients and retirement plan investors, as well as individual and institutional investors through its wealth management division. 

EdgeCo is a provider of technology-enabled retirement solutions for financial intermediaries and their clients, according to a press release.

Micah DiSalvo, Chief Revenue Officer of EdgeCo, commented: “As consolidation continues in the retirement space, it is key for Advisors to select partners who are committed to investing in their success. I’m very proud that American Trust has been able to become a leader in the industry with our continued investment in fiduciary solutions and digital engagement platforms along with an Advisor-focused managed account solution.”

Financial terms of the transaction, which remains subject to customary regulatory and shareholder approvals, were not disclosed. Upon closing of the transaction, the existing staff will be retained and are anticipated to grow as the combined company expands its national reach and service offering with trust offices in Memphis, TN and Lexington, KY, and recordkeeping services via an affiliate in Dubuque, IA.

The agreement with Unified Trust represents the third retirement firm transaction by EdgeCo, following EdgeCo’s acquisition of First Mercantile Trust in 2018 and the 2019 acquisition of American Trust Retirement from American Trust & Savings Bank—with “additional acquisitions planned as part of the growth strategy going forward,” according to the press release. The firm services approximately $130 billion in client assets under custody or administration and more than 15,000 financial advisors and 500 financial institutions. After receiving regulatory approval, the combined recordkeeping business will represent over $10 billion in assets under administration and more than 100,000 participants with a balance.

A company spokesman noted that the trust operations have been rebranded to American Trust Company and the recordkeeping portion of the business is American Trust. At a later date, the Unified Trust brand will be transitioned into American Trust. 

“Over the past three years, we’ve made tremendous progress in creating a differentiated offering in the retirement space for financial intermediaries and their clients, with a focus on delivering a high level of personal service backed by a robust technology platform,” said John Moody, Chief Executive Officer of EdgeCo. “We are very excited to bring Unified Trust into the fold. Their extremely talented employees, as well as their expertise and technology, will greatly expand the offering at American Trust and propel us to a new level.”

Unified Trust founder Gregory Kasten, MD, who will serve in an executive role and on the Board of Directors of American Trust after the acquisition, remarked: “Beyond the opportunity to expand our services and solutions, it was also very important to me that both organizations share the same outcomes-focused philosophy and fiduciary mindset. Our two companies are incredibly well-aligned and as a combined force, we will be in a position to make a major statement in the financial services industry for years to come as well as ensure that we will continue to improve the financial outcomes of investors.” 

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