A record 55 mergers, acquisitions and other deals involving registered investment advisory firms took place in the third quarter, a 57% increase over the previous quarter, according to a report by Echelon Partners.
“In total, there were 23 firms with more than $1 billion in assets acquired during the third quarter — also a record level,” the company said. “The firms that are being acquired in 2020 are some of the largest — with an average of over $1.7 billion in assets — and most professionally run organizations in the wealth management industry
Professional buyers — which include platforms, consolidators and aggregators — and their interest in acquiring larger RIA firms fueled a substantial amount of deal activity during the third quarter, the company said.
Echelon noted that Creative Planning and Hightower Advisors each announced nine deals during the third quarter alone, accounting for 11% of total overall activity.
“With heightened competition between professional buyers over high-quality sellers, we anticipate this trend will continue and that it will play an increased role in M&A activity moving forward,” Echelon said.
Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.
From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.
"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.
Chair also praised the passage of stablecoin legislation this week.
Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
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.
