OneDigital, the Atlanta-based “tech-enabled” insurance, talent and financial advisory firm, has sold a majority stake in the business to Stone Point Capital and Canada Pension Plan Investment Board (CPP Investments). The deal values OneDigital, which has about $143 billion in assets under management and advisement, at more than $7 billion.
Stone Point and CPP are acquiring the stake from existing shareholders, which includes Onex Partners, a Canadian private equity firm. Onex will remain a significant minority shareholder. This represents OneDigital’s fourth equity recapitalization in its 25-year history.
In a statement, OneDigital said the investment will support its organic growth and strategic acquisitions.
“This partnership gives us the fuel to keep building—investing in both people and technology, while sharpening our capabilities and showing up even stronger for our clients,” said Adam Bruckman, resident and CEO of OneDigital, in a statement. “Over the past five years with Onex, we’ve meaningfully expanded our platform and are grateful for their continued investment.”
OneDigital, which was founded in 2000 by Bruckman and Chief Growth Officer Mike Sullivan, operates in five core verticals: employee benefits and human resources, retirement and wealth management, property and casualty, PEO and Medicare Advantage. It serves more than 100,000 employers and millions of individuals.
The firm recently hired Christian Mango from competitor Alera Group to drive the firm’s M&A work in wealth, workplace retirement and related financial services firms. In the new role, he will lead strategic M&A for OneDigital as it seeks to compete with firms also seeking to acquire RIAs and adjacent financial services firms, including industry behemoths Captrust, Hub International, SageView Advisory Group and World Insurance Associates.
OneDigital’s U.S.-based RIA division, OneDigital Investment Advisors, has been active in acquiring wealth and retirement firms in the U.S. from its headquarters in Overland Park, Kan. That unit, however, lost two senior-level retirement plan advisor leaders late last year.
Jania Stout, who had been a senior vice president of retirement and wealth at OneDigital, left to lead Prime Capital Financial’s retirement plan consulting business and financial wellness division. David Montgomery, formerly a director of retirement investment services, left for Concurrent Investment Advisors to be managing director of retirement plan services.
The deal with Stone Point and CPP is expected to close in the fourth quarter of this year.
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