Mesirow buys flexPATH's 3(38) business in second fiduciary deal

Mesirow has agreed to buy flexPATH Strategies' plan-level 3(38) fiduciary business, its second outsourced-fiduciary acquisition of 2026. The transaction, expected to close in the fourth quarter, arrived without financial terms, 401(k) Specialist reported.

flexPATH builds custom portfolios and supplies 3(21) and 3(38) investment lineup services to retirement plans. The acquired operation will fold into Mesirow Fiduciary Solutions, which handles ERISA fiduciary services, investment due diligence, reporting and custom default options for retirement plans, HSAs and IRAs. Mesirow supports nearly 10,000 financial advisers and oversees roughly $164 billion in assets under management and advisement.

Ketan Shah, chief strategy officer and general counsel, described the firm's outlook on outsourced fiduciary work as 'bullish.' Michael Annin, president of Mesirow Fiduciary Solutions, said combining flexPATH's custom portfolio business with Mesirow's scale and technology would strengthen its retirement offerings. DLA advised Mesirow; Ropes & Gray represented flexPATH.

Two purchases in one year is a clear bet that plan sponsors will keep handing investment decisions to specialists. The first test comes when flexPATH's clients decide how much of their fiduciary work to move.