Insurance holding company Genworth Financial has taken one big step in expanding its separate accounts business, tripling its assets under management in the fee-based managed money space with the acquisition of an investment management firm.

Richmond, Virginia-based Genworth -- once known as GE Financial -- on Thursday announced its agreement to purchase AssetMark Investment Services for $230 million at closing, plus performance-based payments of up to $110 million over five years. It will combine its Encino, California-based Genworth Financial Asset Management (GFAM) division with Pleasant Hill, California-based AssetMark.

AssetMark has the multi-manager AssetMark Funds, a family of no-load mutual funds, and a total of over $8 billion in AUM.

Said Pam Schutz, president and CEO of Genworth's retirement income and investment business, "Each organization brings complementary asset advisory strengths to the equation ... GFAM in its separate account business and AssetMark in the growing mutual fund advisory services arena."

Though Genworth is the buyer, it looks like AssetMark's leadership will take charge of the combined firm. Ronald Cordes, one of three founders of AssetMark, will be chairman of the merged entity. His co-founders, Brian O'Toole and Richard Steiny, will be CEO and president, respectively, while Gurinder Ahluwalia, currently GFAM president, will be vice chairman. 

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