Fisher Investments is set to spin off its 401(k) unit into a stand-alone company, led by Nathan Fisher, son of founder Ken Fisher.
This transition will form a new entity, Fisher Retirement Solutions (FRS), anticipated to launch by July 1, according to Naj Srinivas, the executive vice president of corporate communications at Fisher Investments. Nathan Fisher will take on the role of CEO.
This strategic move follows Fisher Investments' recent announcement of selling a minority stake to private-equity firm Advent International and a subsidiary of the Abu Dhabi Investment Authority. However, Srinivas emphasized that the separation of the retirement business is a distinct and long-planned decision to grant Nathan and FRS greater autonomy.
“This move allows Nathan and FRS to operate with more decisiveness and speed,” Srinivas explained. “Nathan sees the value in building something independently, much like Ken did with Fisher Investments.”
The independent unit, previously known as Fisher Investments 401(k) Solutions, specializes in providing retirement plan advice and administration to small and midsize businesses. It ranked No. 21 on the National Association of Plan Advisors’ 2024 list of top defined-contribution plan advisors with multiple offices. The retirement business oversees more than 1,500 plans, catering to over 63,000 participants, with assets valued at $4.07 billion.
Srinivas noted that despite the independence of Fisher’s core wealth management business and Fisher Retirement Solutions, both entities will maintain a cooperative relationship. “They will be friendly, cooperative, and interactive,” he assured.
Fisher Investments reported more than $235 billion in assets under management in its latest Form ADV filing. Recently, the firm announced managing over $275 billion across institutional, U.S. private client, and private client international segments.
The private-equity transaction, marking the first time Fisher has sold a stake to outside investors, was described by Ken Fisher as a measure for estate tax and planning purposes, aimed at preserving the firm's culture and service model. Ken Fisher, serving as executive chairman and co-CIO, emphasized the long-term independence and cultural retention of Fisher Investments through this deal.
“While my health is excellent, this transaction, with its atypically long holding period for a private-equity deal, ensures Fisher Investments' long-term private independence and cultural continuity should anything unforeseen occur,” he stated.
Founded in 1979 by Ken Fisher, the firm has grown to become a significant presence in financial media, with Ken regularly appearing on outlets such as Fox News, Fox Business, and BBN Bloomberg, and contributing extensively to investment literature.
The deal involves Ken Fisher selling his personal holdings to Advent and the Abu Dhabi sovereign-wealth fund while retaining a majority of beneficial ownership and more than 70% of the business’ voting shares. The investment, estimated between $2.5 billion and $3 billion, values Fisher Investments at approximately $12.75 billion.
