LPL Economic to Obtain Waddell & Reed’s Prosperity Administration Enterprise and Enter Into …

Macquarie to purchase Waddell & Reed Economic, Inc. and on closing sell

Waddell & Reed
’s
w
ealth
m
anagement
company
to LPL Economical for $
300
million

Lengthy-term partnership among LPL Money and Macquarie will deliver existing

Waddell & Reed
advisors
and clients
with continuity,
as nicely as lengthier-time period possibilities
by means of partnership
with a major intercontinental asset manager

SAN DIEGO, Dec. 02, 2020 (Globe NEWSWIRE) — LPL Money Holdings Inc. (Nasdaq: LPLA) (“LPL Financial” or “LPL”), a leading U.S. retail expense advisory organization, unbiased broker-supplier, and registered financial investment advisor (RIA) custodian, right now introduced it has entered into an arrangement with Macquarie Asset Administration (“Macquarie”), the asset management division of Macquarie Team (ASX: MQG ADR: MQBKY), to get the wealth management business enterprise of Waddell & Reed Money, Inc. (NYSE: WDR) (“Waddell & Reed”), on completion of Macquarie’s acquisition of all of the issued and fantastic popular shares of Waddell & Reed. On top of that, LPL and Macquarie have agreed to enter into a long-term partnership, with Macquarie becoming just one of LPL’s top rated tier strategic asset management partners.

By means of its subsidiaries, Waddell & Reed has presented financial commitment administration and wealth administration services to purchasers through the U.S. considering the fact that 1937. These days, financial commitment items are distributed underneath the Ivy Investments ® brand name, as nicely as via independent fiscal advisors connected with Waddell & Reed, Inc. As of September 30, 2020, Waddell & Reed’s wealth administration business enterprise experienced assets below administration of about $63 billion, up 10% year-over-yr.

Dan Arnold, President and Chief Government Officer of LPL Economic explained: “Waddell & Reed advisors are remarkably experienced and well-highly regarded throughout the field. They are a terrific healthy both of those culturally and strategically, and we welcome them to the LPL spouse and children. Seeking in advance, we expect our abilities and sources will advantage their methods and assist them unlock extra worth and expansion. Additionally, we look ahead to deepening our long-time period partnership with Macquarie, which will assistance us preserve special areas of the Waddell & Reed advisor practical experience while also positioning us to take a look at supplemental long-expression opportunities jointly.”

Philip J. Sanders, Main Government Officer of Waddell & Reed, explained: “Over the previous number of a long time, we have been focused on leveraging our robust heritage as the foundation for reworking our business into a additional diversified and growth-oriented economical expert services business. The extended-time period partnership involving LPL and Macquarie as element of this transaction accelerates that transformation and in the long run will reward our clientele and unbiased financial advisors although providing sizeable worth to our stockholders.”

Martin Stanley, Head of Macquarie Asset Administration, explained: “The addition of Waddell & Reed Fiscal and our increased partnership with LPL will appreciably boost our skill to mature and invest in our put together organization for the reward of our clients. Ivy Investments’ complementary investment capabilities will deliver diversification to Macquarie Asset Management’s abilities and shopper foundation. The thing to consider offered reflects the excellent of Waddell & Reed’s business enterprise and the long run positive aspects of our partnership with LPL.”

Shawn Lytle, President of Delaware Cash by Macquarie and Head of Macquarie Team in the Americas, additional: “This transaction is an essential step ahead in our growth method for Delaware Funds by Macquarie. The acquisition of Waddell & Reed’s asset administration business enterprise and our partnership with LPL substantially strengthens our position as a best 25(1) US actively managed, very long-phrase, open-finished mutual fund manager across equities, mounted cash flow and multi asset solutions.”

The transaction has been authorized by the Boards of Administrators of LPL Economical, Macquarie Group, and Waddell & Reed and is envisioned to shut in the middle of 2021, topic to regulatory approvals, Waddell & Reed stockholder approval, and other customary closing ailments.

LPL Financial posted an investor presentation with an overview of the transaction on its Investor Relations page at investor.lpl.com.

Centerview Companions LLC served as exceptional financial advisor and Ropes & Gray LLP served as exceptional authorized advisor to LPL in link with the transaction.

About LPL Economic
LPL Monetary ( https://www.lpl.com ) is a chief in the retail money advice sector, the nation’s premier unbiased broker/vendor(+) and a leading custodian (or supplier of custodial solutions) to RIAs. We provide independent economical advisors and monetary establishments, delivering them with the technology, research, clearing and compliance solutions, and apply administration programs they want to build and improve flourishing practices. LPL enables them to deliver aim advice to hundreds of thousands of American households in search of wealth management, retirement setting up, financial scheduling and asset management answers.

(+)Primarily based on total revenues, Financial Planning magazine June 1996-2020.

Securities and Advisory Providers provided through LPL Financial LLC, a Registered Investment decision Advisor. Member FINRA/SIPC. We routinely disclose data that may possibly be significant to shareholders in the “Investor Relations” or “Press Releases” part of our web site.

About Waddell & Reed Economic
As a result of its subsidiaries, Waddell & Reed Economic, Inc. has provided expense administration and wealth management solutions to clients throughout the United States due to the fact 1937. Right now, Waddell & Reed Economical distributes its expenditure items as a result of the unaffiliated channel less than the Ivy Investments® brand name (encompassing broker/dealer, retirement, and registered financial investment advisors), its wealth administration channel (by means of unbiased fiscal advisors associated with Waddell & Reed, Inc.), and its institutional channel (which include outlined benefit programs, pension options, endowments and subadvisory associations). For much more details, stop by ir.waddell.com.

About Macquarie Asset Administration
Macquarie Asset Administration (MAM) is Macquarie’s asset administration company. MAM is a entire-service asset manager, providing investment decision methods to shoppers across a array of capabilities which include infrastructure & renewables, serious estate, agriculture, transportation finance, non-public credit, equities, set cash flow, and multi-asset methods. As of September 30, 2020, MAM had $A554.9 billion of property less than administration. MAM has over 1,900 personnel operating throughout 20 markets in Australia, the Americas, Europe and Asia. MAM has been controlling property for institutional and retail buyers given that 1980 in Australia and 1929 in the US, via a predecessor business, formerly regarded as Delaware Investments.

(1)

Resource: Assets less than management as of Sept. 30 – Based mostly on data represented in Strategic Perception and Morningstar. Details incorporates ICI Technique of Income: Salesforce, Institutional and Retirement. Details excludes Variable Insurance policies Items, Closed Finish Funds, ETFs, passive mutual cash, Money Marketplace Funds, Delaware Pooled Trusts, and Optimum Resources.

Forward-Wanting Statements
Statements in this push launch concerning LPL Monetary Holdings Inc. (together with its subsidiaries, which include LPL Economical LLC, the “Company” or “LPL Financial”) and its opportunity advancement, business method and strategies, which includes the anticipated benefits of Macquarie Group’s acquisition of Waddell & Reed Financial, Inc. (together with its subsidiaries, “Waddell & Reed”) and LPL Financial’s acquisition of Waddell & Reed’s wealth administration business and partnership with Macquarie Team, as nicely as any other statements that are not linked to current specifics or existing conditions or that are not purely historic, constitute ahead-searching statements. These ahead-looking statements are centered on the historical overall performance of the Business and Waddell & Reed and the Company’s ideas, estimates and anticipations as of December 2, 2020. Ahead-searching statements are not ensures that the future effects, programs, intentions or anticipations expressed or implied by the Business will be accomplished. Matters issue to forward-hunting statements contain recognised and not known dangers and uncertainties, which includes economic, legislative, regulatory, competitive and other variables, which could result in degrees of belongings serviced, actual fiscal or operating results, stages of activity or the timing of functions to be materially distinctive than people expressed or implied by ahead-hunting statements. In specific, the Enterprise can present no assurance that the belongings documented as serviced by fiscal advisors affiliated with Waddell & Reed (“Waddell & Reed Advisors”) will translate into belongings serviced by LPL Fiscal, that Waddell & Reed Advisors will be part of LPL Financial, or that the positive aspects that are expected to accrue to LPL Fiscal, Waddell & Reed, Macquarie Team and their respective advisors and stockholders as a end result of the transactions explained herein will materialize. Important factors that could induce or lead to this kind of dissimilarities consist of: failure of the parties to satisfy the closing situations relevant to the acquisitions described herein in a timely way or at all, like the completion of the acquisition of Waddell & Reed by Macquarie Group, getting the required stockholder and regulatory approvals, and the retention by Waddell & Reed of minimum amount property prior to closing disruptions to the parties’ businesses as a end result of the announcement and pendency of the transactions, issues and delays in recruiting Waddell & Reed Advisors or onboarding the shoppers or businesses of Waddell & Reed Advisors the incapability by the Firm to maintain profits and earnings progress or to entirely recognize income or price synergies or the other predicted added benefits of the transactions, which depend in section on the Company’s accomplishment in onboarding belongings at this time served by Waddell & Reed Advisors disruptions of the Company’s or Waddell & Reed’s business due to transaction-similar uncertainty or other variables producing it far more challenging to manage associations with its fiscal advisors and their customers, workforce, other company companions or governmental entities the inability to apply onboarding designs and other consequences connected with acquisitions the alternative by clientele of Waddell & Reed Advisors not to open brokerage and/or advisory accounts at LPL Monetary or move their property from Waddell & Reed to LPL Monetary unforeseen liabilities arising from the acquisition of Waddell & Reed’s wealth management subsidiaries improvements in standard financial and money market conditions, like retail investor sentiment fluctuations in the price of assets below custody consequences of level of competition in the money products and services field, like competitors’ success in recruiting Waddell & Reed Advisors and the other aspects established forth in Section I, “Item 1A. Risk Factors” in the Company’s 2019 Annual Report on Form 10-K and any subsequent SEC submitting. Apart from as necessary by legislation, the Company exclusively disclaims any obligation to update any ahead-wanting statements as a final result of developments developing just after the day of this push release, even if its estimates modify, and you ought to not count on individuals statements as representing the Company’s views as of any day subsequent to the day of December 2, 2020.

Investor Relations:
Chris Koegel
617-897-4574
[email protected]

Media Relations:
Jeffrey Mochal
704-733-3589
[email protected]