Great Gray CEO Rob Barnett Explains RPAG Acquisition

Boston-based Great Gray Group made a splash in the retirement plan industry on Thursday when it announced that it acquired Retirement Plan Advisory Group (RPAG).

Private equity firm Madison Dearborn Partners owns both companies.

“We have a shared mission to ensure that every retiree has access to the best possible retirement solutions,” Great Gray CEO Rob Barnett said when asked about the impetus for the deal.

We aim to unlock the full potential of retirement plans through innovative approaches that bring clarity, efficiency, and security to the future of retirement.”

He added that RPAG’s technology and the “over 120,000 retirement plans and 10 million participants it impacts” fits with Great Gray’s investment strategy.

Specifically, RPAG’s practice management software was of interest to Great Gray. It will complement BoardingPass, the latter’s onboarding solution, a combination that Barnett said will “simplify and digitize” the client experience.

“This acquisition enhances our ability to drive innovation and expand access to high-quality retirement solutions, ensuring advisors can deliver even greater value to their clients,” Barnett said.

RPAG will operate “largely as it has been,” but its advisor network means expanded marketing, sales, and support opportunities for Great Gray, including offering its collective investment trusts (CIT) through RPAG’s partnership program.

Great Gray Group recently hired Pratyush Rai as its CTO, who is responsible for technology across both Great Gray Trust and RPAG. It also plans to double its marketing, sales, and client support teams by mid-2025.

CIT Adoption

CIT adoption has steadily grown since at least 2020, specifically in the target-date space, and Morningstar reported in August that net flows have finally overtaken their mutual fund counterparts.

“Morningstar’s annual target-date landscape report took note of target-date CITs’ growth trend, which isn’t slowing,” Morningstar Senior Analyst Megan Pacholok wrote. “Their market share rise has been steady since 2015, gaining about 2 to 3 percentage points each year.”

Barnett believes the acquisition will further help with adoption, and through RPAG’s Technology Partnership Program, advisors will have access to lower-cost, institutionally-managed CITs.

“Ultimately, our goal is to make retirement planning smarter, simpler, and more effective,” Barnett concluded. “[It ensures] that more retirees can achieve financial security through forward-thinking solutions and fiduciary expertise.”

Original article published in NAPA by John Sullivan