Macquarie to amass Waddell & Reed Monetary, Inc. and upon closing promote
Waddell & Reed’s wealth management enterprise to LPL Monetary for $300 million
Lengthy-term partnership between LPL Monetary and Macquarie will present present
Waddell & Reed advisors and shoppers with continuity, in addition to longer-term alternatives by way of partnership with a number one worldwide asset supervisor
SAN DIEGO, Dec. 02, 2020 (GLOBE NEWSWIRE) — LPL Monetary Holdings Inc. (Nasdaq: LPLA) (“LPL Monetary” or “LPL”), a number one U.S. retail funding advisory agency, impartial broker-dealer, and registered funding advisor (RIA) custodian, at present introduced it has entered into an settlement with Macquarie Asset Administration (“Macquarie”), the asset administration division of Macquarie Group (ASX: MQG; ADR: MQBKY), to amass the wealth administration enterprise of Waddell & Reed Monetary, Inc. (NYSE: WDR) (“Waddell & Reed”), upon completion of Macquarie’s acquisition of the entire issued and excellent frequent shares of Waddell & Reed. Moreover, LPL and Macquarie have agreed to enter right into a long-term partnership, with Macquarie changing into considered one of LPL’s high tier strategic asset administration companions.
By means of its subsidiaries, Waddell & Reed has supplied funding administration and wealth administration providers to shoppers all through the U.S. since 1937. In the present day, funding merchandise are distributed underneath the Ivy Investments ® model, in addition to by way of impartial monetary advisors related to Waddell & Reed, Inc. As of September 30, 2020, Waddell & Reed’s wealth administration enterprise had property underneath administration of roughly $63 billion, up 10% year-over-year.
Dan Arnold, President and Chief Govt Officer of LPL Monetary stated: “Waddell & Reed advisors are extremely skilled and well-respected all through the trade. They’re a terrific match each culturally and strategically, and we welcome them to the LPL household. Trying forward, we count on our capabilities and sources will profit their practices and assist them unlock extra worth and progress. Moreover, we look ahead to deepening our long-term partnership with Macquarie, which is able to assist us protect distinctive elements of the Waddell & Reed advisor expertise whereas additionally positioning us to discover extra long-term alternatives collectively.”
Philip J. Sanders, Chief Govt Officer of Waddell & Reed, stated: “Over the previous few years, we have now been centered on leveraging our robust heritage as the inspiration for reworking our agency right into a extra diversified and growth-oriented monetary providers enterprise. The long-term partnership between LPL and Macquarie as a part of this transaction accelerates that transformation and in the end will profit our shoppers and impartial monetary advisors whereas delivering vital worth to our stockholders.”
Martin Stanley, Head of Macquarie Asset Administration, stated: “The addition of Waddell & Reed Monetary and our enhanced partnership with LPL will considerably improve our capacity to develop and spend money on our mixed enterprise for the advantage of our shoppers. Ivy Investments’ complementary funding capabilities will present diversification to Macquarie Asset Administration’s capabilities and shopper base. The consideration provided displays the standard of Waddell & Reed’s enterprise and the long run advantages of our partnership with LPL.”
Shawn Lytle, President of Delaware Funds by Macquarie and Head of Macquarie Group within the Americas, added: “This transaction is a vital step ahead in our progress technique for Delaware Funds by Macquarie. The acquisition of Waddell & Reed’s asset administration enterprise and our partnership with LPL considerably strengthens our place as a high 25(1) US actively managed, long-term, open-ended mutual fund supervisor throughout equities, mounted earnings and multi asset options.”
The transaction has been authorised by the Boards of Administrators of LPL Monetary, Macquarie Group, and Waddell & Reed and is predicted to shut in the midst of 2021, topic to regulatory approvals, Waddell & Reed stockholder approval, and different customary closing circumstances.
LPL Monetary posted an investor presentation with an summary of the transaction on its Investor Relations web page at investor.lpl.com.
Centerview Companions LLC served as unique monetary advisor and Ropes & Grey LLP served as unique authorized advisor to LPL in reference to the transaction.
About LPL Monetary
LPL Monetary (https://www.lpl.com) is a pacesetter within the retail monetary recommendation market, the nation’s largest impartial dealer/seller(+) and a number one custodian (or supplier of custodial providers) to RIAs. We serve impartial monetary advisors and monetary establishments, offering them with the expertise, analysis, clearing and compliance providers, and follow administration applications they should create and develop thriving practices. LPL allows them to offer goal steering to tens of millions of American households searching for wealth administration, retirement planning, monetary planning and asset administration options.
(+)Based mostly on complete revenues, Monetary Planning journal June 1996-2020.
Securities and Advisory Providers provided by way of LPL Monetary LLC, a Registered Funding Advisor. Member FINRA/SIPC. We routinely disclose info which may be necessary to shareholders within the “Investor Relations” or “Press Releases” part of our web site.
About Waddell & Reed Monetary
By means of its subsidiaries, Waddell & Reed Monetary, Inc. has supplied funding administration and wealth administration providers to shoppers all through america since 1937. In the present day, Waddell & Reed Monetary distributes its funding merchandise by way of the unaffiliated channel underneath the Ivy Investments® model (encompassing dealer/seller, retirement, and registered funding advisors), its wealth administration channel (by way of impartial monetary advisors related to Waddell & Reed, Inc.), and its institutional channel (together with outlined profit plans, pension plans, endowments and subadvisory relationships). For extra info, go to ir.waddell.com.
About Macquarie Asset Administration
Macquarie Asset Administration (MAM) is Macquarie’s asset administration enterprise. MAM is a full-service asset supervisor, offering funding options to shoppers throughout a variety of capabilities together with infrastructure & renewables, actual property, agriculture, transportation finance, personal credit score, equities, mounted earnings, and multi-asset options. As of September 30, 2020, MAM had $A554.9 billion of property underneath administration. MAM has over 1,900 workers working throughout 20 markets in Australia, the Americas, Europe and Asia. MAM has been managing property for institutional and retail traders since 1980 in Australia and 1929 within the US, by way of a predecessor agency, previously often called Delaware Investments.
|(1)||Supply: Belongings underneath administration as of Sept. 30 – Based mostly on information represented in Strategic Perception and Morningstar. Knowledge consists of ICI Technique of Gross sales: Salesforce, Institutional and Retirement. Knowledge excludes Variable Insurance coverage Merchandise, Closed Finish Funds, ETFs, passive mutual funds, Cash Market Funds, Delaware Pooled Trusts, and Optimum Funds.|
Statements on this press launch relating to LPL Monetary Holdings Inc. (along with its subsidiaries, together with LPL Monetary LLC, the “Firm” or “LPL Monetary”) and its potential progress, enterprise technique and plans, together with the anticipated advantages of Macquarie Group’s acquisition of Waddell & Reed Monetary, Inc. (along with its subsidiaries, “Waddell & Reed”) and LPL Monetary’s acquisition of Waddell & Reed’s wealth administration enterprise and partnership with Macquarie Group, in addition to every other statements that aren’t associated to current info or present circumstances or that aren’t purely historic, represent forward-looking statements. These forward-looking statements are primarily based on the historic efficiency of the Firm and Waddell & Reed and the Firm’s plans, estimates and expectations as of December 2, 2020. Ahead-looking statements will not be ensures that the long run outcomes, plans, intentions or expectations expressed or implied by the Firm might be achieved. Issues topic to forward-looking statements contain recognized and unknown dangers and uncertainties, together with financial, legislative, regulatory, aggressive and different components, which can trigger ranges of property serviced, precise monetary or working outcomes, ranges of exercise or the timing of occasions to be materially totally different than these expressed or implied by forward-looking statements. Particularly, the Firm can present no assurance that the property reported as serviced by monetary advisors affiliated with Waddell & Reed (“Waddell & Reed Advisors”) will translate into property serviced by LPL Monetary, that Waddell & Reed Advisors will be a part of LPL Monetary, or that the advantages which are anticipated to accrue to LPL Monetary, Waddell & Reed, Macquarie Group and their respective advisors and stockholders because of the transactions described herein will materialize. Essential components that would trigger or contribute to such variations embrace: failure of the events to fulfill the closing circumstances relevant to the acquisitions described herein in a well timed method or in any respect, together with the completion of the acquisition of Waddell & Reed by Macquarie Group, acquiring the required stockholder and regulatory approvals, and the retention by Waddell & Reed of minimal property previous to closing; disruptions to the events’ companies because of the announcement and pendency of the transactions, difficulties and delays in recruiting Waddell & Reed Advisors or onboarding the shoppers or companies of Waddell & Reed Advisors; the shortcoming by the Firm to maintain income and earnings progress or to totally notice income or expense synergies or the opposite anticipated advantages of the transactions, which rely partially on the Firm’s success in onboarding property at present served by Waddell & Reed Advisors; disruptions of the Firm’s or Waddell & Reed’s enterprise because of transaction-related uncertainty or different components making it tougher to take care of relationships with its monetary advisors and their shoppers, workers, different enterprise companions or governmental entities; the shortcoming to implement onboarding plans and different penalties related to acquisitions; the selection by shoppers of Waddell & Reed Advisors to not open brokerage and/or advisory accounts at LPL Monetary or transfer their property from Waddell & Reed to LPL Monetary; unexpected liabilities arising from the acquisition of Waddell & Reed’s wealth administration subsidiaries; modifications generally financial and monetary market circumstances, together with retail investor sentiment; fluctuations within the worth of property underneath custody; results of competitors within the monetary providers trade, together with opponents’ success in recruiting Waddell & Reed Advisors; and the opposite components set forth in Half I, “Merchandise 1A. Danger Components” within the Firm’s 2019 Annual Report on Type 10-Ok and any subsequent SEC submitting. Besides as required by regulation, the Firm particularly disclaims any obligation to replace any forward-looking statements because of developments occurring after the date of this press launch, even when its estimates change, and you shouldn’t depend on these statements as representing the Firm’s views as of any date subsequent to the date of December 2, 2020.