Voya Financial's Strategic Acquisition of OneAmerica and Its Implications for Long-Term Value Creation in the Retirement and Private Credit Sectors

In the ever-evolving landscape of financial services, Voya Financial's acquisition of OneAmerica's full-service retirement plan business stands out as a masterclass in strategic capital allocation. Finalized in January 2025, the $210 million deal—structured with an upfront $50 million payment and performance-based contingent payments—has not only expanded Voya's asset base but also fortified its position in a high-growth, capital-efficient asset class. For investors, the transaction raises critical questions: How does this acquisition enhance Voya's competitive positioning? What operational and earnings synergies are unlocked? And how does it align with the broader trend of capital-efficient private credit strategies?

Strategic Rationale: Scaling Retirement Solutions, Expanding Distribution

Voya's acquisition of OneAmerica's retirement business adds $47 billion in assets under administration (AUA) to its Emerging and Mid-Market segments and $15 billion in recordkeeping assets to its Large Market offerings. This elevates Voya's Wealth Solutions division to $670 billion in Defined Contribution client assets, serving 60,000 retirement plans for 8 million participants. The integration of OneAmerica's capabilities—particularly in Employee Stock Ownership Plan (ESOP) administration—creates a more comprehensive product suite, enabling Voya to address the evolving needs of mid-market and emerging plan sponsors.

The transaction also expands Voya's distribution footprint. By leveraging OneAmerica's advisor relationships and digital infrastructure, Voya gains access to new client segments while deepening existing ones. The shared use of the FIS Omni platform by both companies ensures a smoother transition, minimizing integration costs and preserving client experience. As Doug Murray, Voya's senior vice president of wealth solutions, noted, the structured approach to integrating personnel and services underscores Voya's commitment to maintaining client satisfaction during the transition.

Earnings Potential: A Tailwind for Retirement and Private Credit

The acquisition's impact on Voya's earnings is already evident. In Q2 2025, the Retirement segment reported pre-tax adjusted operating earnings of $235 million, up 9% year-over-year, driven by the OneAmerica acquisition. Total client assets in the segment surged to $757 billion, a 30% increase from June 2024, with adjusted operating margins expanding to 39.3% (from 37.1% in the prior year). These metrics highlight Voya's ability to scale efficiently while maintaining profitability.

The private credit sector, a key growth driver for Voya, benefits indirectly from this expansion. With the retirement segment now serving as a distribution channel for alternative investments, Voya can cross-sell its private credit offerings—such as corporate lending, infrastructure debt, and structured finance—to a broader base of plan sponsors. This aligns with the growing demand for diversified, risk-managed returns in a low-yield environment. Voya's 30-year expertise in investment-grade private credit positions it to capitalize on this trend, particularly as mid-market clients seek alternatives to traditional fixed income.

Capital Efficiency: Balancing Scale and Discipline

Voya's capital efficiency metrics further underscore the acquisition's strategic value. The contingent payment structure—linking $160 million of the deal to performance metrics—limits upfront capital outlay while aligning incentives with long-term value creation. This approach mirrors Voya's broader capital discipline, as evidenced by its Q2 2025 generation of $0.2 billion in excess capital, partially returned to shareholders via dividends.

The acquisition also enhances Voya's return on equity (ROE). By expanding its asset base without proportionally increasing risk-weighted capital, Voya improves its ROE trajectory. For context, the Retirement segment's adjusted operating margin of 39.3% in Q2 2025 suggests strong profitability per dollar of assets, a hallmark of capital-efficient operations. Meanwhile, the Investment Management segment—now managing over $1 trillion in assets—benefits from fee-based revenue growth, with net inflows of $1.8 billion in Q2 2025.

Long-Term Implications: A Platform for Sustainable Growth

The OneAmerica acquisition is more than a transaction—it's a strategic pivot toward a future where retirement and private credit solutions are increasingly intertwined. Voya's leadership in Workplace Solutions, combined with its expanded distribution network, creates a flywheel effect: larger client bases drive cross-selling opportunities, which in turn fund further innovation and scale.

For investors, the key takeaway is Voya's ability to balance growth with capital discipline. The company's focus on high-margin, fee-based revenue streams—such as recordkeeping and alternative investments—positions it to outperform peers in a low-interest-rate environment. Additionally, Voya's disciplined approach to shareholder returns, including its $600 million facility agreement announced in May 2025, provides flexibility to reinvest in growth or reward shareholders.

Investment Thesis

Voya Financial's acquisition of OneAmerica is a textbook example of strategic capital allocation in a capital-efficient asset class. By expanding its retirement platform and leveraging cross-selling into private credit, Voya is well-positioned to capitalize on secular trends in workplace savings and alternative investments. For investors, the combination of earnings growth, margin expansion, and disciplined capital deployment makes Voya an attractive long-term holding.

Actionable Insight: Monitor Voya's Q4 2024 and full-year 2024 earnings call in February 2025 for updates on integration progress and performance-based contingent payments. Additionally, track the company's ROE and fee-based revenue growth as key indicators of the acquisition's long-term success.

In a market where scale and specialization are paramount, Voya's dual focus on retirement and private credit offers a compelling path to sustained value creation. As the retirement landscape evolves and private credit gains traction, Voya's strategic moves today could define its leadership tomorrow.