Focus Financial on track for 'successful' year for RIA M&A: Adolf

Focus Financial on track for 'successful' year for RIA M&A: Adolf
The firm has announced 24 registered investment adviser transactions so far this year and is likely to announce more deals before year-end, the CEO said.
NOV 04, 2022

Focus Financial Partners Inc. reported Thursday that it had closed or announced 24 registered investment adviser transactions so far this year.

That tallies up to a very good year for RIA mergers and acquisitions, although not as spectacular as last year, Focus Financial's founder and CEO Rudy Adolf said in an interview on Thursday.

"It's been one of our most successful M&A years, but it won't be like 2021, which was the best in the firm's history," Adolf said. "Last year, we did 38 RIA transactions." He added that more deals would likely be announced before the end of the year.

Focus Financial Partners, which launched in 2004, is one of the leading RIA aggregators in the financial advice industry. It did an initial public offering in 2018 and is an industry bellwether of sorts.

While deal making has slowed at Focus Financial Partners, the RIA industry is on track to hit another record number of mergers and deals this year, according to the latest report from DeVoe & Co., an industry consultant.

In the past, Adolf has likened the prices that some competing aggregators were paying for RIAs to "drunken sailors" on a binge. "In 2021, there was some aggressive players out there," he said. "It was amateur hour, but it doesn't affect us because we hold steady through good times and bad."

Meanwhile, Focus Financial Partners reported total revenues for the third quarter of $519.9 million, up 14.4% when compared to the same period last year.

Revenues from partner RIA firms acquired over the last 12 months accounted for $48.4 million of the increase, according to the companny. The remaining $16.9 million resulted from growth in wealth management fees at Focus Financial's existing partners, which includes the effect of completed mergers.

'IN the Office' with business professor and author Beth Livingston

Latest News

UBS profit beats estimates as Ermotti sees brighter outlook
UBS profit beats estimates as Ermotti sees brighter outlook

Wealth management unit sees inflows of $23 billion.

Evercore to buy advisory firm Robey Warshaw for $196 million
Evercore to buy advisory firm Robey Warshaw for $196 million

Deal will give US investment bank a foothold in lucrative European market.

Gates and Buffett’s Giving Pledge is 15 years old, but many signatories are richer than ever
Gates and Buffett’s Giving Pledge is 15 years old, but many signatories are richer than ever

New report examines the impact that the initiative has had on philanthropy.

Americans stay the course on 401(k) savings despite inflation fears
Americans stay the course on 401(k) savings despite inflation fears

Few feel confident that they will meet their retirement goals.

What advisors need to know about SECURE 2.0’s impact on retirement income planning
What advisors need to know about SECURE 2.0’s impact on retirement income planning

Catch-up contributions, required minimum distributions, and 529 plans are just some of the areas the Biden-ratified legislation touches.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.