Macquarie to receive Waddell & Reed Economic, Inc. and on closing promote
Waddell & Reed’s wealth management company to LPL Economic for $300 million
Extensive-term partnership amongst LPL Economic and Macquarie will present current
Waddell & Reed advisors and clientele with continuity, as effectively as more time-term options by partnership with a top worldwide asset supervisor
SAN DIEGO, Dec. 02, 2020 (Globe NEWSWIRE) — LPL Economical Holdings Inc. (Nasdaq: LPLA) (“LPL Financial” or “LPL”), a major U.S. retail financial commitment advisory agency, impartial broker-seller, and registered financial investment advisor (RIA) custodian, now declared it has entered into an agreement with Macquarie Asset Administration (“Macquarie”), the asset management division of Macquarie Group (ASX: MQG ADR: MQBKY), to receive the prosperity management business of Waddell & Reed Economical, Inc. (NYSE: WDR) (“Waddell & Reed”), on completion of Macquarie’s acquisition of all of the issued and exceptional common shares of Waddell & Reed. Additionally, LPL and Macquarie have agreed to enter into a extensive-phrase partnership, with Macquarie getting to be one particular of LPL’s leading tier strategic asset administration partners.
Via its subsidiaries, Waddell & Reed has delivered financial investment management and wealth management solutions to customers in the course of the U.S. due to the fact 1937. Right now, expenditure products are distributed less than the Ivy Investments ® brand name, as properly as via unbiased monetary advisors linked with Waddell & Reed, Inc. As of September 30, 2020, Waddell & Reed’s prosperity management small business experienced property under administration of around $63 billion, up 10% 12 months-around-calendar year.
Dan Arnold, President and Main Executive Officer of LPL Monetary claimed: “Waddell & Reed advisors are extremely seasoned and perfectly-highly regarded all over the market. They are a fantastic fit each culturally and strategically, and we welcome them to the LPL relatives. Seeking forward, we assume our capabilities and methods will profit their procedures and aid them unlock supplemental benefit and growth. Additionally, we appear ahead to deepening our lengthy-phrase partnership with Macquarie, which will support us protect exceptional features of the Waddell & Reed advisor working experience while also positioning us to discover further lengthy-time period alternatives jointly.”
Philip J. Sanders, Main Govt Officer of Waddell & Reed, reported: “Over the previous few several years, we have been targeted on leveraging our strong heritage as the foundation for transforming our organization into a extra diversified and growth-oriented financial products and services organization. The extensive-expression partnership involving LPL and Macquarie as aspect of this transaction accelerates that transformation and in the long run will benefit our customers and impartial monetary advisors while providing important benefit to our stockholders.”
Martin Stanley, Head of Macquarie Asset Administration, claimed: “The addition of Waddell & Reed Fiscal and our enhanced partnership with LPL will appreciably maximize our means to grow and commit in our put together company for the profit of our clients. Ivy Investments’ complementary expense abilities will present diversification to Macquarie Asset Management’s capabilities and customer foundation. The thought provided reflects the excellent of Waddell & Reed’s business enterprise and the long term advantages of our partnership with LPL.”
Shawn Lytle, President of Delaware Money by Macquarie and Head of Macquarie Team in the Americas, included: “This transaction is an essential move ahead in our advancement method for Delaware Cash by Macquarie. The acquisition of Waddell & Reed’s asset administration company and our partnership with LPL substantially strengthens our placement as a best 25(1) US actively managed, extended-term, open up-ended mutual fund supervisor across equities, set money and multi asset methods.”
The transaction has been authorized by the Boards of Directors of LPL Money, Macquarie Team, and Waddell & Reed and is anticipated to close in the middle of 2021, issue to regulatory approvals, Waddell & Reed stockholder approval, and other customary closing conditions.
LPL Economical posted an trader presentation with an overview of the transaction on its Trader Relations website page at investor.lpl.com.
Centerview Partners LLC served as exclusive financial advisor and Ropes & Grey LLP served as unique authorized advisor to LPL in link with the transaction.
About LPL Economic
LPL Monetary (https://www.lpl.com) is a chief in the retail fiscal guidance market place, the nation’s greatest independent broker/seller(+) and a leading custodian (or provider of custodial services) to RIAs. We serve impartial money advisors and fiscal institutions, furnishing them with the know-how, analysis, clearing and compliance products and services, and observe administration courses they will need to generate and mature thriving practices. LPL enables them to deliver objective guidance to hundreds of thousands of American households seeking wealth administration, retirement preparing, economical organizing and asset management answers.
(+)Centered on overall revenues, Financial Planning magazine June 1996-2020.
Securities and Advisory Services presented by LPL Economical LLC, a Registered Expense Advisor. Member FINRA/SIPC. We routinely disclose information and facts that may perhaps be essential to shareholders in the “Investor Relations” or “Press Releases” part of our internet site.
About Waddell & Reed Economical
Through its subsidiaries, Waddell & Reed Money, Inc. has delivered investment administration and wealth administration companies to consumers through the United States since 1937. Right now, Waddell & Reed Monetary distributes its investment solutions by means of the unaffiliated channel below the Ivy Investments® model (encompassing broker/dealer, retirement, and registered financial investment advisors), its prosperity management channel (by impartial financial advisors involved with Waddell & Reed, Inc.), and its institutional channel (which includes defined gain strategies, pension ideas, endowments and subadvisory relationships). For a lot more info, stop by ir.waddell.com.
About Macquarie Asset Management
Macquarie Asset Administration (MAM) is Macquarie’s asset management business. MAM is a whole-services asset manager, supplying financial commitment remedies to shoppers throughout a range of abilities including infrastructure & renewables, true estate, agriculture, transportation finance, private credit rating, equities, fixed earnings, and multi-asset solutions. As of September 30, 2020, MAM experienced $A554.9 billion of assets below administration. MAM has more than 1,900 staff working throughout 20 markets in Australia, the Americas, Europe and Asia. MAM has been managing assets for institutional and retail traders considering that 1980 in Australia and 1929 in the US, via a predecessor organization, previously acknowledged as Delaware Investments.
| (1) | Resource: Assets less than management as of Sept. 30 – Primarily based on data represented in Strategic Insight and Morningstar. Details involves ICI Strategy of Revenue: Salesforce, Institutional and Retirement. Details excludes Variable Insurance policy Items, Closed Stop Funds, ETFs, passive mutual funds, Cash Current market Money, Delaware Pooled Trusts, and The best possible Funds. |
Ahead-On the lookout Statements
Statements in this press launch relating to LPL Money Holdings Inc. (with each other with its subsidiaries, together with LPL Economic LLC, the “Company” or “LPL Financial”) and its potential expansion, business enterprise method and designs, which includes the anticipated rewards of Macquarie Group’s acquisition of Waddell & Reed Economical, Inc. (collectively with its subsidiaries, “Waddell & Reed”) and LPL Financial’s acquisition of Waddell & Reed’s wealth management business enterprise and partnership with Macquarie Group, as properly as any other statements that are not connected to current info or latest situations or that are not purely historic, represent ahead-looking statements. These ahead-on the lookout statements are dependent on the historical general performance of the Business and Waddell & Reed and the Company’s options, estimates and anticipations as of December 2, 2020. Forward-wanting statements are not assures that the future success, programs, intentions or anticipations expressed or implied by the Organization will be achieved. Issues subject matter to ahead-searching statements entail known and unidentified pitfalls and uncertainties, which include economic, legislative, regulatory, competitive and other elements, which may well cause levels of assets serviced, actual financial or functioning effects, concentrations of action or the timing of events to be materially different than those expressed or implied by forward-seeking statements. In specific, the Company can provide no assurance that the belongings documented as serviced by fiscal advisors affiliated with Waddell & Reed (“Waddell & Reed Advisors”) will translate into property serviced by LPL Economic, that Waddell & Reed Advisors will sign up for LPL Economic, or that the gains that are anticipated to accrue to LPL Monetary, Waddell & Reed, Macquarie Group and their respective advisors and stockholders as a outcome of the transactions described herein will materialize. Crucial factors that could lead to or add to this sort of distinctions contain: failure of the events to satisfy the closing problems applicable to the acquisitions described herein in a timely manner or at all, including the completion of the acquisition of Waddell & Reed by Macquarie Team, obtaining the necessary stockholder and regulatory approvals, and the retention by Waddell & Reed of least belongings prior to closing disruptions to the parties’ firms as a result of the announcement and pendency of the transactions, issues and delays in recruiting Waddell & Reed Advisors or onboarding the purchasers or businesses of Waddell & Reed Advisors the inability by the Enterprise to maintain income and earnings expansion or to thoroughly notice revenue or price synergies or the other expected added benefits of the transactions, which rely in section on the Company’s achievements in onboarding assets currently served by Waddell & Reed Advisors disruptions of the Company’s or Waddell & Reed’s small business thanks to transaction-connected uncertainty or other components producing it extra tough to sustain associations with its economic advisors and their customers, staff members, other business enterprise partners or governmental entities the incapacity to implement onboarding designs and other repercussions related with acquisitions the option by customers of Waddell & Reed Advisors not to open brokerage and/or advisory accounts at LPL Economic or go their belongings from Waddell & Reed to LPL Financial unforeseen liabilities arising from the acquisition of Waddell & Reed’s wealth management subsidiaries changes in normal economic and monetary sector conditions, including retail trader sentiment fluctuations in the value of belongings below custody effects of competitiveness in the money services field, like competitors’ success in recruiting Waddell & Reed Advisors and the other elements established forth in Aspect I, “Merchandise 1A. Risk Elements” in the Firm’s 2019 Yearly Report on Sort 10-K and any subsequent SEC submitting. Except as necessary by regulation, the Corporation specially disclaims any obligation to update any forward-wanting statements as a end result of developments developing soon after the day of this press release, even if its estimates change, and you need to not depend on individuals statements as symbolizing the Company’s sights as of any date 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]
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