Ken Fisher’s Son to Lead Spin-Off of 401(k) Business from Fisher Investments

Fisher Investments, a prominent financial firm, is taking a significant step by spinning off its 401(k) business into a separate entity. This new company, Fisher Retirement Solutions, will be led by Nathan Fisher, son of founder Ken Fisher. The move is expected to be completed by July 1, according to Fisher’s executive vice president of corporate communications, Naj Srinivas.

This decision comes shortly after Fisher Investments announced the sale of a minority stake in its overall business to private-equity firm Advent International and an Abu Dhabi Investment Authority subsidiary. However, Srinivas clarified that the separation of the retirement business was a planned move unrelated to the recent transaction.

“This was part of a separate, long-planned move to provide Nathan and FRS with complete autonomy so they can move with more decisiveness and greater speed,” Srinivas explained. “Nathan has come to realize the beauty of doing something your own way, on your own terms and desires to build FRS on his own—just as Ken did building Fisher Investments.”

The news of Fisher Investments’ 401(k) unit becoming an independent entity was first reported by WealthManagement.com. The company’s retirement division, Fisher Investments 401(k) Solutions, specializes in providing retirement plan advice and administration for small and medium-sized businesses. It ranked No. 21 on the National Association of Plan Advisors’ 2024 list of top defined-contribution plan advisors with multiple offices.

According to the same list, Fisher’s retirement business currently works with more than 1,500 plans containing over 63,000 participants, with the asset value of those plans amounting to .07 billion. While Fisher’s core wealth management business and Fisher Retirement Solutions will operate as distinct entities, they are expected to maintain a collaborative and supportive relationship.

Fisher Investments, with over 5 billion in assets under management as per its most recent regulatory filing, has a significant presence in the financial industry. The firm manages more than 5 million across its institutional, U.S. private client, and private client international businesses. The recent private-equity deal marking the first time Fisher has sold a stake of its business to outside investors was aimed at estate tax and planning purposes, ensuring the firm’s independence and service model continuity.

Founder Ken Fisher, who remains executive chairman and co-CIO, founded the firm in 1979 and has become a prominent figure in financial media. Fisher regularly appears on popular outlets such as Fox News, Fox Business, and BBN Bloomberg, in addition to writing extensively on investing and finance. Despite the recent transaction, Fisher will retain a majority of beneficial ownership and over 70% of the voting shares of the company.

While specific terms of the deal between Fisher Investments, Advent International, and the Abu Dhabi sovereign-wealth fund were not disclosed, the investment is estimated to be between .5 billion and billion, valuing Fisher Investments at .75 billion.

The strategic move to make Fisher Retirement Solutions an independent entity signifies a new chapter for the firm, allowing Nathan Fisher to lead the company in his own style and vision. As Fisher Investments continues to evolve and adapt to changing market dynamics, the separation of its retirement business highlights a forward-thinking approach to growth and innovation in the financial services sector.