PENSCO Trust is acquiring the individual retirement account business of Lincoln Trust, combining the businesses, which are both independent custodians of alternative assets, as PENSCO.

The new San Francisco, CA-based offering will expand the range of alternative assets clients can hold in tax-advantaged accounts, including investments in private equity, venture capital, start-up companies, real estate, notes and precious metals, PENSCO said.

The transaction, which is expected to close in March but remains subject to regulatory review, will see PENSCO expand to $10 billion in assets under custody from $4 billion, and its client base grow to 57,000 from 17,000, the firm said. It will also involve the transfer of 6,000 Lincoln advisors to the combined company.

In addition, PENSCO’s technology platform will “streamline” the process of investing in alternative assets in tax-advantaged accounts, as the firm will have the “capability to create an all-electronic approach for clients, advisors and investment sponsors,” according to the statement. This is intended to minimize the “physical movement of paperwork” associated with account administration.

“After a decade of poor stock market performance, investors and advisors are increasing their asset allocation to alternative investments to rebuild wealth,” said Kelly Rodriques, chief executive of PENSCO.

“At the same time, banks and broker-dealers are migrating alternative asset accounts to independent custodians that have special expertise to administer these complex assets,” Rodriques added.

Denver, CO-based Lincoln Trust will remain an independent entity, retaining its 401(k) business.

PENSCO provides alternative-asset custodian services to investors, and also provides services to plan sponsors, RIAs, financial planners, family offices, accountants and attorneys.