Macquarie to acquire Waddell & Reed Financial, Inc. and on closing promote
Waddell & Reed‘s wealth management company to LPL Money for $300 million
Lengthy-phrase partnership amongst LPL Financial and Macquarie will offer present
Waddell & Reed advisors and clients with continuity, as well as for a longer time-time period options by way of partnership with a top global asset manager
SAN DIEGO, Dec. 02, 2020 (Globe NEWSWIRE) — LPL Fiscal Holdings Inc. (NASDAQ:LPLA) (“LPL Money” or “LPL”), a main U.S. retail investment decision advisory agency, independent broker-vendor, and registered financial commitment advisor (RIA) custodian, today declared it has entered into an arrangement with Macquarie Asset Administration (“Macquarie”), the asset management division of Macquarie Team ((ASX: MQG, OTC:MQBKY), to get the prosperity management business of Waddell & Reed Financial, Inc. (NYSE:WDR) (“Waddell & Reed”), upon completion of Macquarie’s acquisition of all of the issued and exceptional widespread shares of Waddell & Reed. Additionally, LPL and Macquarie have agreed to enter into a extensive-time period partnership, with Macquarie getting to be one particular of LPL’s leading tier strategic asset administration associates.
By way of its subsidiaries, Waddell & Reed has supplied expenditure management and wealth management products and services to shoppers in the course of the U.S. given that 1937. Today, financial commitment merchandise are dispersed underneath the Ivy Investments ® manufacturer, as effectively as as a result of impartial economical advisors affiliated with Waddell & Reed, Inc. As of September 30, 2020, Waddell & Reed’s prosperity management business experienced property beneath administration of close to $63 billion, up 10% year-above-12 months.
Dan Arnold, President and Main Govt Officer of LPL Monetary claimed: “Waddell & Reed advisors are hugely professional and well-revered all over the industry. They are a great suit the two culturally and strategically, and we welcome them to the LPL family. Hunting forward, we anticipate our capabilities and resources will benefit their methods and assist them unlock added benefit and progress. Additionally, we appear forward to deepening our lengthy-phrase partnership with Macquarie, which will enable us protect one of a kind aspects of the Waddell & Reed advisor working experience while also positioning us to check out extra very long-phrase alternatives with each other.”
Philip J. Sanders, Chief Govt Officer of Waddell & Reed, explained: “In excess of the earlier several years, we have been centered on leveraging our sturdy heritage as the foundation for transforming our organization into a extra diversified and development-oriented money products and services company. The prolonged-phrase partnership concerning LPL and Macquarie as element of this transaction accelerates that transformation and in the end will profit our shoppers and unbiased fiscal advisors though providing significant worth to our stockholders.”
Martin Stanley, Head of Macquarie Asset Management, claimed: “The addition of Waddell & Reed Monetary and our enhanced partnership with LPL will substantially enhance our capability to expand and spend in our blended enterprise for the profit of our shoppers. Ivy Investments’ complementary expenditure abilities will present diversification to Macquarie Asset Management’s capabilities and shopper base. The thing to consider provided demonstrates the excellent of Waddell & Reed’s company and the long term rewards of our partnership with LPL.”
Shawn Lytle, President of Delaware Money by Macquarie and Head of Macquarie Group in the Americas, extra: “This transaction is an crucial phase ahead in our progress approach for Delaware Funds by Macquarie. The acquisition of Waddell & Reed’s asset management business enterprise and our partnership with LPL drastically strengthens our position as a leading 25(1) US actively managed, prolonged-expression, open-finished mutual fund supervisor throughout equities, preset profits and multi asset methods.”
The transaction has been approved by the Boards of Administrators of LPL Economical, Macquarie Group, and Waddell & Reed and is predicted to close in the center of 2021, subject to regulatory approvals, Waddell & Reed stockholder acceptance, and other customary closing ailments.
LPL Economic posted an investor presentation with an overview of the transaction on its Investor Relations site at investor.lpl.com.
Centerview Associates LLC served as unique fiscal advisor and Ropes & Grey LLP served as special lawful advisor to LPL in relationship with the transaction.
About LPL Fiscal
LPL Money (https://www.lpl.com) is a chief in the retail fiscal information industry, the nation’s major impartial broker/vendor(+) and a leading custodian (or company of custodial solutions) to RIAs. We serve impartial monetary advisors and financial institutions, giving them with the technological know-how, research, clearing and compliance solutions, and exercise management programs they will need to build and expand flourishing methods. LPL enables them to offer aim guidance to tens of millions of American family members looking for wealth management, retirement scheduling, monetary arranging and asset management remedies.
(+)Based mostly on full revenues, Financial Planning magazine June 1996-2020.
Securities and Advisory Products and services provided by way of LPL Economical LLC, a Registered Investment Advisor. Member FINRA/SIPC. We routinely disclose facts that might be important to shareholders in the “Trader Relations” or “Push Releases” part of our web-site.
About Waddell & Reed Monetary
By way of its subsidiaries, Waddell & Reed Economical, Inc. has presented expenditure management and prosperity administration providers to shoppers through the United States considering that 1937. These days, Waddell & Reed Fiscal distributes its investment decision goods via the unaffiliated channel underneath the Ivy Investments® brand name (encompassing broker/vendor, retirement, and registered expenditure advisors), its wealth management channel (via unbiased fiscal advisors related with Waddell & Reed, Inc.), and its institutional channel (including defined gain programs, pension plans, endowments and subadvisory relationships). For far more info, pay a visit to ir.waddell.com.
About Macquarie Asset Management
Macquarie Asset Management (MAM) is Macquarie’s asset administration enterprise. MAM is a complete-company asset supervisor, offering investment decision remedies to customers throughout a range of abilities such as infrastructure & renewables, true estate, agriculture, transportation finance, non-public credit score, equities, set money, and multi-asset methods. As of September 30, 2020, MAM had $A554.9 billion of assets underneath management. MAM has around 1,900 workers running across 20 markets in Australia, the Americas, Europe and Asia. MAM has been taking care of assets for institutional and retail traders considering the fact that 1980 in Australia and 1929 in the US, by a predecessor business, formerly identified as Delaware Investments.
| (1) | Source: Property under management as of Sept. 30 – Dependent on facts represented in Strategic Perception and Morningstar. Knowledge contains ICI Approach of Income: Salesforce, Institutional and Retirement. Details excludes Variable Coverage Items, Closed Stop Cash, ETFs, passive mutual funds, Revenue Industry Resources, Delaware Pooled Trusts, and Ideal Cash. |
Forward-Hunting Statements
Statements in this press release pertaining to LPL Financial Holdings Inc. (with each other with its subsidiaries, which includes LPL Financial LLC, the “Corporation” or “LPL Financial”) and its prospective advancement, business approach and programs, which include the predicted positive aspects of Macquarie Group’s acquisition of Waddell & Reed Money, Inc. (together with its subsidiaries, “Waddell & Reed”) and LPL Financial’s acquisition of Waddell & Reed’s wealth management business enterprise and partnership with Macquarie Group, as well as any other statements that are not relevant to existing points or current conditions or that are not purely historic, constitute forward-hunting statements. These forward-on the lookout statements are based mostly on the historical efficiency of the Firm and Waddell & Reed and the Company’s strategies, estimates and anticipations as of December 2, 2020. Forward-hunting statements are not ensures that the future outcomes, designs, intentions or expectations expressed or implied by the Firm will be attained. Matters subject matter to ahead-wanting statements entail acknowledged and unfamiliar risks and uncertainties, like economic, legislative, regulatory, aggressive and other variables, which could result in concentrations of assets serviced, genuine fiscal or operating benefits, concentrations of activity or the timing of gatherings to be materially different than individuals expressed or implied by ahead-hunting statements. In unique, the Corporation can provide no assurance that the belongings reported as serviced by financial advisors affiliated with Waddell & Reed (“Waddell & Reed Advisors”) will translate into property serviced by LPL Economical, that Waddell & Reed Advisors will sign up for LPL Money, or that the advantages that are envisioned to accrue to LPL Fiscal, Waddell & Reed, Macquarie Team and their respective advisors and stockholders as a final result of the transactions explained herein will materialize. Significant aspects that could trigger or add to these types of discrepancies consist of: failure of the events to satisfy the closing circumstances relevant to the acquisitions explained herein in a well timed way or at all, which includes the completion of the acquisition of Waddell & Reed by Macquarie Team, acquiring the necessary stockholder and regulatory approvals, and the retention by Waddell & Reed of bare minimum property prior to closing disruptions to the parties’ businesses as a final result of the announcement and pendency of the transactions, difficulties and delays in recruiting Waddell & Reed Advisors or onboarding the consumers or businesses of Waddell & Reed Advisors the lack of ability by the Enterprise to sustain profits and earnings development or to completely comprehend earnings or expenditure synergies or the other envisioned benefits of the transactions, which depend in component on the Firm’s results in onboarding assets at this time served by Waddell & Reed Advisors disruptions of the Firm’s or Waddell & Reed’s business because of to transaction-associated uncertainty or other aspects building it additional tough to preserve associations with its economic advisors and their clientele, employees, other enterprise associates or governmental entities the incapability to put into action onboarding ideas and other repercussions affiliated with acquisitions the preference by customers of Waddell & Reed Advisors not to open up brokerage and/or advisory accounts at LPL Fiscal or shift their property from Waddell & Reed to LPL Financial unforeseen liabilities arising from the acquisition of Waddell & Reed’s wealth management subsidiaries alterations in common financial and fiscal market place situations, including retail trader sentiment fluctuations in the price of assets below custody consequences of level of competition in the economical solutions business, which include competitors’ accomplishment in recruiting Waddell & Reed Advisors and the other elements set forth in Section I, “Item 1A. Possibility Factors” in the Firm’s 2019 Once-a-year Report on Sort 10-K and any subsequent SEC submitting. Besides as expected by law, the Enterprise exclusively disclaims any obligation to update any ahead-searching statements as a end result of developments happening after the date of this press launch, even if its estimates alter, and you must not count on people statements as representing the Firm’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]
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