In its third wealth management acquisition in 18 months, Tulsa-based BOK Financial Corp., parent of Bank of Oklahoma, has inked a deal to buy the Houston-based investment firm MBM Advisors.
BOK has been growing its wealth management services through acquisitions for the past year and a half. It acquired the Denver-based registered investment adviser, The Milestone Group, in late 2012. On Friday, BOK announced it had completed its acquisition of Kansas-based trust and asset management company, GTRUST Financial Corp.
Expanding BOK’s wealth management services makes sense as a growing number of baby boomers near retirement age, said Scott Grauer, executive vice president for wealth management at BOK.
“It’s going to be increasingly important for us to excel in that space as we see dramatic trends in demographics with many baby boomers looking at their retirement assets,” Grauer said.
Offering fee-based wealth management services has also been a good way for BOK to diversify its business, he said.
The terms of the sale, announced Tuesday, were not disclosed. The acquisition will increase BOK Financial’s retirement and individual assets under management by $1.25 billion, and expand BOK’s wealth management capabilities, the company said.
Founded in 1966, MBM Advisors specializes in managing clients’ retirement and pension plans, including investment advisory services. MBM Advisors has clients in 15 states, including states in which BOK Financial already has a full-service banking presence.
BOK Financial has been in the retirement plan business for more than 58 years, specializing in guiding employers on plan design, plan administration and plan compliance, as well as advisory services. The corporation serves 430 retirement plans with $5.6 billion in assets and 70,000 plan participants. MBM Advisors adds 222 plans, $1.1 billion in plan assets and 16,000 plan participants.
The MBM purchase is expected to close in the second quarter of 2014.