Mesirow has agreed to acquire the plan-level 3(38) business of flexPATH Strategies, expanding its outsourced fiduciary capabilities and strengthening its position in the retirement plan market. Financial terms of the transaction were not disclosed.
The acquisition is the second strategic deal Mesirow Fiduciary Solutions completed in 2026 and reflects the firm’s continued push to grow both organically and through acquisitions.
flexPATH provides outsourced fiduciary and custom portfolio construction solutions for retirement plans. Its plan-level 3(38) business will deepen Mesirow’s capabilities in discretionary custom portfolio management and investment lineup services.
Mesirow Fiduciary Solutions currently offers 3(38) custom portfolio construction along with 3(21) and 3(38) investment lineup services.
The platform supports nearly 10,000 financial advisors and oversees approximately $164 billion in assets under management and advisement.
Mesirow believes combining flexPATH’s established custom portfolio business with its institutional infrastructure, technology, and fiduciary expertise will broaden its ability to serve retirement plan advisors and sponsors.
The transaction also strengthens Mesirow’s position in the growing market for outsourced fiduciary services, where retirement plan sponsors increasingly look to specialist providers for investment selection, monitoring, governance, compliance, and portfolio construction.
Under ERISA, a 3(38) investment manager assumes discretionary authority over investment decisions for a retirement plan, providing plan sponsors with an additional layer of delegated fiduciary responsibility.
Mesirow’s platform combines fiduciary services with proprietary investment due diligence, plan-level reporting, and compliance capabilities.
Its technology infrastructure connects with many of the largest retirement recordkeepers in the U.S., giving the firm the ability to deliver fiduciary services across a large and distributed advisor and plan sponsor network.
Mesirow also develops custom default programs and bespoke investment solutions using a proprietary asset allocation framework.
Those portfolios can incorporate traditional investments alongside advanced retirement income products and liquid private assets, giving plan sponsors additional flexibility in designing retirement strategies around participant needs.
The flexPATH acquisition is expected to increase Mesirow’s reach in the discretionary custom portfolio market while adding scale to its existing investment lineup and fiduciary capabilities.
The firm also sees the transaction as another step in building a broader platform capable of serving retirement plans, health savings accounts, and individual retirement accounts.
Mesirow plans to continue evaluating strategic growth opportunities that can expand the range and scale of services offered through its Fiduciary Solutions business.
The transaction is expected to close in the fourth quarter of 2026, subject to customary closing conditions.
DLA is representing Mesirow in connection with the transaction, while Ropes & Gray is representing flexPATH.
KEY QUOTES:
“By combining flexPATH’s established custom portfolio business with Mesirow’s institutional scale, technology infrastructure and fiduciary expertise, we are further enhancing our ability to deliver differentiated retirement solutions.”
“This transaction expands our reach within the discretionary custom portfolio market and reinforces our longstanding commitment to helping advisors and plan sponsors achieve better participant outcomes.”
Michael Annin, CFA, President of Mesirow Fiduciary Solutions
“The acquisition of flexPATH’s plan-level 3(38) fiduciary business marks our second acquisition in the outsourced fiduciary space this year, demonstrating our bullish view of the outsourced fiduciary space and our ability to deliver innovative fiduciary solutions as a leader in the space.”
Ketan Shah, Chief Strategy Officer and General Counsel at Mesirow
