LPL Financial on Wednesday afternoon said it will acquire the wealth management arm of the struggling Waddell & Reed Financial Inc., which encompasses 921 registered reps and financial advisers and $63 billion in client assets. The deal is expected to close by the middle of next year.
It's an unusual, two-step transaction. LPL is paying $300 million for the wealth management group but only after Macquarie Asset Management closes its deal for the outstanding shares of Waddell & Reed, which was also announced Wednesday after the market closed.
Macquarie Group is acquiring all of the outstanding shares of Waddell & Reed for $25 per share in cash representing total consideration of $1.7 billion.
In October, Waddell & Reed's stock price jumped to a recent high on speculation that it was a takeover target. Waddell & Reed also owns the Ivy Funds, a leading manager of actively managed mutual funds, a struggling part of the asset management industry.
With almost 17,000 brokers and advisers, LPL has a long history of making large acquisitions. In 2017, LPL bought National Planning Holdings Inc., an independent broker-dealer network with 3,200 advisers.
Six apartment deals, one "big account," and $2.7M in undocumented insider loans. Now the lawsuit lands
The Illinois order refers to Brandon Ellington’s investment program as a “Ponzi-like scheme.”
But the Amazon executive chair seems to want it both ways, arguing that taxing the ultra-wealthy won't help struggling Americans.
Northern Trust planning leader sees the bill extending qualified charitable distributions to employer plans as a potential positive step — but advisors shouldn't overlook bigger holes in the strategy.
Markets will always create reasons for investors to worry. The advisor’s role is not to predict uncertainty, but to help clients understand why volatility should not derail a well-built financial plan.
As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management
Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline
