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LPL Economical to Obtain Waddell & Reed’s Prosperity Administration Organization and Enter Into …

Macquarie to receive Waddell & Reed Fiscal, Inc. and on closing offer

Waddell & Reed
’s
w
ealth
m
anagement
enterprise
to LPL Financial for $
300
million

Extensive-expression partnership among LPL Economical and Macquarie will supply existing

Waddell & Reed
advisors
and shoppers
with continuity,
as perfectly as for a longer period-phrase prospects
via partnership
with a leading international asset manager

SAN DIEGO, Dec. 02, 2020 (Globe NEWSWIRE) — LPL Financial Holdings Inc. (Nasdaq: LPLA) (“LPL Financial” or “LPL”), a top U.S. retail expense advisory firm, impartial broker-supplier, and registered financial investment advisor (RIA) custodian, now announced it has entered into an arrangement with Macquarie Asset Administration (“Macquarie”), the asset administration division of Macquarie Group (ASX: MQG ADR: MQBKY), to obtain the wealth management company of Waddell & Reed Economic, Inc. (NYSE: WDR) (“Waddell & Reed”), on completion of Macquarie’s acquisition of all of the issued and fantastic typical shares of Waddell & Reed. In addition, LPL and Macquarie have agreed to enter into a extensive-expression partnership, with Macquarie turning out to be just one of LPL’s leading tier strategic asset administration partners.

Via its subsidiaries, Waddell & Reed has supplied expense administration and wealth administration solutions to shoppers all over the U.S. given that 1937. Currently, financial commitment items are distributed beneath the Ivy Investments ® manufacturer, as very well as as a result of impartial economical advisors affiliated with Waddell & Reed, Inc. As of September 30, 2020, Waddell & Reed’s prosperity management organization had property underneath administration of approximately $63 billion, up 10% yr-about-year.

Dan Arnold, President and Chief Government Officer of LPL Economic explained: “Waddell & Reed advisors are very skilled and properly-highly regarded all through the marketplace. They are a great in good shape both culturally and strategically, and we welcome them to the LPL family. Searching ahead, we hope our capabilities and assets will reward their tactics and assistance them unlock more benefit and advancement. Also, we appear forward to deepening our extended-time period partnership with Macquarie, which will assist us maintain exceptional features of the Waddell & Reed advisor expertise though also positioning us to discover supplemental very long-phrase options alongside one another.”

Philip J. Sanders, Main Executive Officer of Waddell & Reed, mentioned: “Over the past number of years, we have been targeted on leveraging our sturdy heritage as the basis for reworking our organization into a additional diversified and advancement-oriented financial products and services organization. The extended-expression partnership in between LPL and Macquarie as section of this transaction accelerates that transformation and finally will profit our customers and impartial monetary advisors although providing substantial worth to our stockholders.”

Martin Stanley, Head of Macquarie Asset Administration, reported: “The addition of Waddell & Reed Economical and our enhanced partnership with LPL will drastically increase our potential to mature and make investments in our put together business for the advantage of our consumers. Ivy Investments’ complementary expenditure capabilities will give diversification to Macquarie Asset Management’s capabilities and consumer base. The consideration available displays the quality of Waddell & Reed’s company and the foreseeable future gains of our partnership with LPL.”

Shawn Lytle, President of Delaware Funds by Macquarie and Head of Macquarie Group in the Americas, included: “This transaction is an critical action forward in our growth system for Delaware Resources by Macquarie. The acquisition of Waddell & Reed’s asset management business and our partnership with LPL drastically strengthens our situation as a prime 25(1) US actively managed, long-time period, open up-ended mutual fund manager throughout equities, set profits and multi asset alternatives.”

The transaction has been accepted by the Boards of Administrators of LPL Financial, Macquarie Team, and Waddell & Reed and is predicted to near in the middle of 2021, matter to regulatory approvals, Waddell & Reed stockholder approval, and other customary closing conditions.

LPL Financial posted an investor presentation with an overview of the transaction on its Trader Relations web site at investor.lpl.com.

Centerview Partners LLC served as special money advisor and Ropes & Gray LLP served as exclusive authorized advisor to LPL in relationship with the transaction.

About LPL Money
LPL Economic ( https://www.lpl.com ) is a chief in the retail economical assistance market, the nation’s premier unbiased broker/supplier(+) and a leading custodian (or provider of custodial providers) to RIAs. We serve unbiased monetary advisors and monetary establishments, furnishing them with the engineering, investigate, clearing and compliance providers, and practice administration courses they need to have to develop and expand flourishing practices. LPL allows them to supply aim assistance to thousands and thousands of American families seeking wealth administration, retirement organizing, economical setting up and asset administration remedies.

(+)Centered on full revenues, Financial Planning magazine June 1996-2020.

Securities and Advisory Services supplied by means of LPL Fiscal LLC, a Registered Financial commitment Advisor. Member FINRA/SIPC. We routinely disclose details that might be significant to shareholders in the “Investor Relations” or “Press Releases” portion of our web site.

About Waddell & Reed Monetary
As a result of its subsidiaries, Waddell & Reed Money, Inc. has delivered expenditure administration and prosperity management products and services to customers in the course of the United States considering the fact that 1937. Currently, Waddell & Reed Monetary distributes its expense merchandise through the unaffiliated channel below the Ivy Investments® model (encompassing broker/vendor, retirement, and registered expense advisors), its wealth administration channel (as a result of impartial financial advisors linked with Waddell & Reed, Inc.), and its institutional channel (which include defined reward options, pension strategies, endowments and subadvisory associations). For far more facts, visit ir.waddell.com.

About Macquarie Asset Administration
Macquarie Asset Management (MAM) is Macquarie’s asset administration company. MAM is a comprehensive-support asset supervisor, furnishing financial investment solutions to purchasers across a variety of abilities like infrastructure & renewables, true estate, agriculture, transportation finance, private credit score, equities, preset earnings, and multi-asset solutions. As of September 30, 2020, MAM had $A554.9 billion of assets under management. MAM has about 1,900 team working throughout 20 marketplaces in Australia, the Americas, Europe and Asia. MAM has been handling assets for institutional and retail traders since 1980 in Australia and 1929 in the US, by means of a predecessor company, previously known as Delaware Investments.


(1) Source: Assets under administration as of Sept. 30 – Primarily based on knowledge represented in Strategic Insight and Morningstar. Info incorporates ICI Process of Product sales: Salesforce, Institutional and Retirement. Details excludes Variable Insurance plan Merchandise, Closed Stop Cash, ETFs, passive mutual money, Cash Current market Resources, Delaware Pooled Trusts, and Ideal Money.

Ahead-Seeking Statements
Statements in this push launch about LPL Economical Holdings Inc. (together with its subsidiaries, such as LPL Fiscal LLC, the “Company” or “LPL Financial”) and its possible expansion, organization approach and strategies, which include the predicted positive aspects of Macquarie Group’s acquisition of Waddell & Reed Money, Inc. (with each other with its subsidiaries, “Waddell & Reed”) and LPL Financial’s acquisition of Waddell & Reed’s prosperity administration business enterprise and partnership with Macquarie Group, as nicely as any other statements that are not linked to current information or recent ailments or that are not purely historical, constitute ahead-searching statements. These forward-wanting statements are based on the historical performance of the Company and Waddell & Reed and the Company’s ideas, estimates and anticipations as of December 2, 2020. Ahead-searching statements are not assures that the long run benefits, options, intentions or anticipations expressed or implied by the Business will be attained. Issues topic to ahead-searching statements include recognised and mysterious threats and uncertainties, which includes economic, legislative, regulatory, aggressive and other variables, which may lead to concentrations of assets serviced, true fiscal or operating benefits, degrees of activity or the timing of activities to be materially distinctive than all those expressed or implied by ahead-hunting statements. In certain, the Organization can supply no assurance that the assets documented as serviced by fiscal advisors affiliated with Waddell & Reed (“Waddell & Reed Advisors”) will translate into assets serviced by LPL Monetary, that Waddell & Reed Advisors will sign up for LPL Monetary, or that the benefits that are expected to accrue to LPL Fiscal, Waddell & Reed, Macquarie Group and their respective advisors and stockholders as a final result of the transactions explained herein will materialize. Critical variables that could cause or add to this kind of dissimilarities include: failure of the get-togethers to satisfy the closing situations applicable to the acquisitions explained herein in a well timed fashion or at all, like the completion of the acquisition of Waddell & Reed by Macquarie Group, obtaining the needed stockholder and regulatory approvals, and the retention by Waddell & Reed of minimum property prior to closing disruptions to the parties’ enterprises as a consequence of the announcement and pendency of the transactions, troubles and delays in recruiting Waddell & Reed Advisors or onboarding the consumers or enterprises of Waddell & Reed Advisors the lack of ability by the Firm to sustain earnings and earnings development or to completely comprehend income or price synergies or the other expected gains of the transactions, which rely in component on the Company’s accomplishment in onboarding belongings presently served by Waddell & Reed Advisors disruptions of the Company’s or Waddell & Reed’s business owing to transaction-relevant uncertainty or other elements creating it extra hard to manage associations with its economic advisors and their clientele, workers, other business associates or governmental entities the inability to put into action onboarding strategies and other effects affiliated with acquisitions the selection by consumers of Waddell & Reed Advisors not to open up brokerage and/or advisory accounts at LPL Money or go their assets from Waddell & Reed to LPL Economic unexpected liabilities arising from the acquisition of Waddell & Reed’s wealth administration subsidiaries adjustments in normal economic and economical market disorders, like retail trader sentiment fluctuations in the value of property beneath custody results of opposition in the financial companies industry, such as competitors’ accomplishment in recruiting Waddell & Reed Advisors and the other factors set forth in Portion I, “Item 1A. Risk Factors” in the Company’s 2019 Annual Report on Type 10-K and any subsequent SEC submitting. Besides as necessary by legislation, the Firm especially disclaims any obligation to update any ahead-looking statements as a outcome of developments happening right after the day of this press launch, even if its estimates improve, and you should not count on individuals statements as representing the Company’s sights as of any date subsequent to the date of December 2, 2020.

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

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