M&A for RIAs on the wane, study says

This year through April, just seven deals for RIAs were struck, in contrast to last year, when there were 58 deals.
JUN 05, 2008
By  Bloomberg
The mergers and acquisitions market for registered investment advisers is seeing a short-term slowdown this year, but the appetite for deals will remain strong in the long run. That is one of the conclusions of an updated study presented by Pershing LLC at its annual meeting, Insite, in Hollywood, Fla. This year through April, just seven deals for RIAs were struck. That is in contrast to last year, when 58 deals were consummated, according to the biannual study, “Real Deals 2008: Defined Information on Mergers and Acquisitions for Advisers.” There are a variety of reasons for the current dearth of deals, said Philip Palaveev, president of Fusion Advisor Network of Elmsford, N.Y., who presented the study here yesterday. "In some cases, capital has dried up," he said. Another factor was that "some strategic players have become distracted" by the general turmoil in the market, Mr. Palaveev said. Valuations for firms were holding steady, he said, but prices for "premium" firms are likely to go up because of scarcity. Last year was a banner year for mergers and acquisitions for RIAs. The number of deals increased 53% compared with 2006 and was double the number in 2003, according to the study. Pershing. of Jersey City, N.J., last completed the Real Deals study in 2006.

Latest News

Advisor moves: RBC swipes $1.7B UBS team, Baird duo departs for LPL's Linsco channel
Advisor moves: RBC swipes $1.7B UBS team, Baird duo departs for LPL's Linsco channel

RBC Wealth Management's latest move in New York adds an elite eight-member team to its recently opened Westchester office.

Stifel star broker, Chuck Roberts, leaves firm under cloud of investor complaints
Stifel star broker, Chuck Roberts, leaves firm under cloud of investor complaints

Stifel – so far - is on the hook for more than $166 million in damages, legal fees and settlements in investor complaints involving Roberts, a 35-year industry veteran.

iCapital secures $820M in latest funding, hits $7.5B
iCapital secures $820M in latest funding, hits $7.5B

The giant alt investments platform's latest financing led by T. Rowe Price and SurgoCap Partners, along with State Street, UBS, and BNY, will fuel additional growth on multiple fronts.

Merrill Lynch on the hook for $3.7M after clients claimed sale of unsuitable private equity
Merrill Lynch on the hook for $3.7M after clients claimed sale of unsuitable private equity

Some investors recently have seen million dollar plus decisions by FINRA arbitration panels involving complex products decisions go their way.

What does it take to feel 'financially comfortable' or 'wealthy' in 2025?
What does it take to feel 'financially comfortable' or 'wealthy' in 2025?

New report shines a light on how Americans view wealth today.

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.