Slide 1: Empower Retirement's Acquisition of Personal Capital
Empower Retirement’s Acquisition of Personal Capital June 29 2020 Note: All figures in U.S. Dollars
Slide 2: Cautionary notes
Cautionary notes CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION This document contains forward-looking information. Forward-looking information includes statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as “will”, "expects", "
Slide 3: Great-West Lifeco to Acquire Personal Capital through Empower
GREAT-WEST LIFECO TO ACQUIRE PERSONAL CAPITAL THROUGH EMPOWER • Great-West Lifeco (“Lifeco”), through its subsidiary Empower Retirement (“Empower”), has entered into an agreement to acquire Personal Capital, a hybrid wealth manager that combines a leading-edge digital experience with personalized ad
Slide 4: Acquisition to Accelerate Empower's Long-Term Growth
ACQUISITION TO ACCELERATE EMPOWER’S LONG-TERM GROWTH Add best-in-class hybrid digital wealth management platform to Empower • High growth direct-to-consumer wealth management business focused on large mass affluent market • Profitable core business model with attractive new customer Lifetime Value /
Slide 5: Personal Capital Today
PERSONAL CAPITAL TODAY Personal Capital delivers a hybrid technology driven by a digital experience paired with human advice Best-in-Class Hybrid Digital Wealth Platform High-Growth Business Highly Attractive Business Model • A differentiated digital wealth management platform • Gross Revenue CAGR o
Slide 6: The Power of the Personal Capital Platform
THE POWER OF THE PERSONAL CAPITAL PLATFORM Personal Capital provides a differentiated 360º view of financial lives and utilizes a hybrid engagement model to create a digital, personalized service and experience for mass affluent investors Platform “At-a-Glance” Personal Capital by the Numbers VIEW ~
Slide 7: Immediately Scalable
IMMEDIATELY SCALABLE An Empower-Personal Capital combination is immediately scalable and accelerates Empower’s growth in the individual retail market across the platform Three Complementary Businesses (Retail) Retirement platform Mass affluent customers and held away assets Direct to consumer with a
Slide 8: Transaction Details
TRANSACTION DETAILS • Empower will acquire Personal Capital for $825M up front consideration Key Transaction Terms • Up to $175M in deferred consideration – Earnout to be paid over 2 years subject to achieving target net new asset growth objectives • Up front consideration to be funded with cash on
Slide 9: Integration and Combination Benefits
INTEGRATION AND COMBINATION BENEFITS Personal Capital's operating model will enhance retail service offering and drive value for all stakeholders Integrate Personal • Enhance Empower’s retail wealth management platform by integrating Personal Capital’s Capital’s Tools, technology and capabilities Te
Slide 10: Transparency Across Metrics and Targets
TRANSPARENCY ACROSS METRICS AND TARGETS Lifeco expects to achieve attractive growth and profitability levels for Personal Capital and will track and report metrics for the different segments on a separate basis in the future Personal Capital’s Historical Financial Performance Gross Revenue ($M) • Pe
Slide 11: Key Takeaways
KEY TAKEAWAYS Add best-in-class hybrid digital wealth management platform to Empower Significantly accelerate the growth of Empower’s existing DC-focused retail wealth management platform by integrating Personal Capital’s technology and capabilities Save meaningful cost and time investment as Empowe