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SAN DIEGO, Dec 02, 2020 (World NEWSWIRE via COMTEX) —
Macquarie to receive Waddell & Reed Economical, Inc. and on closing sell
Waddell & Reed‘swealth management organization to LPL Monetary for $300 million
Very long-expression partnership among LPL Monetary and Macquarie will give current
Waddell & Reed advisors and shoppers with continuity, as very well as longer-time period possibilities by way of partnership with a primary intercontinental asset manager
SAN DIEGO, Dec. 02, 2020 (World NEWSWIRE) — LPL Economic Holdings Inc. (Nasdaq: LPLA) (“LPL Financial” or “LPL”), a top U.S. retail financial investment advisory business, unbiased broker-supplier, and registered investment decision advisor (RIA) custodian, these days announced it has entered into an agreement with Macquarie Asset Administration (“Macquarie”), the asset administration division of Macquarie Group (ASX: MQG ADR: MQBKY), to receive the wealth administration enterprise of Waddell & Reed Economical, Inc. (NYSE: WDR) (“Waddell & Reed”), on completion of Macquarie’s acquisition of all of the issued and superb common shares of Waddell & Reed. Also, LPL and Macquarie have agreed to enter into a lengthy-phrase partnership, with Macquarie starting to be a person of LPL’s best tier strategic asset management companions.
By means of its subsidiaries, Waddell & Reed has presented expenditure administration and prosperity administration solutions to purchasers all through the U.S. given that 1937. Nowadays, financial investment merchandise are dispersed under the Ivy Investments (R) manufacturer, as very well as through unbiased fiscal advisors related with Waddell & Reed, Inc. As of September 30, 2020, Waddell & Reed’s prosperity administration company had assets less than administration of somewhere around $63 billion, up 10% calendar year-in excess of-yr.
Dan Arnold, President and Chief Executive Officer of LPL Fiscal explained: “Waddell & Reed advisors are remarkably skilled and perfectly-respected in the course of the market. They are a marvelous match both equally culturally and strategically, and we welcome them to the LPL family. Wanting ahead, we be expecting our capabilities and means will gain their procedures and assist them unlock more worth and growth. On top of that, we search forward to deepening our long-term partnership with Macquarie, which will assistance us maintain one of a kind elements of the Waddell & Reed advisor knowledge whilst also positioning us to examine added prolonged-expression alternatives jointly.”
Philip J. Sanders, Chief Executive Officer of Waddell & Reed, stated: “Above the past handful of decades, we have been targeted on leveraging our strong heritage as the basis for reworking our business into a more diversified and expansion-oriented monetary expert services enterprise. The very long-phrase partnership involving LPL and Macquarie as section of this transaction accelerates that transformation and finally will benefit our purchasers and independent economic advisors though offering substantial worth to our stockholders.”
Martin Stanley, Head of Macquarie Asset Management, stated: “The addition of Waddell & Reed Economic and our enhanced partnership with LPL will significantly maximize our skill to expand and devote in our combined company for the benefit of our customers. Ivy Investments’ complementary financial investment capabilities will give diversification to Macquarie Asset Management’s abilities and client foundation. The consideration made available displays the quality of Waddell & Reed’s organization and the potential rewards of our partnership with LPL.”
Shawn Lytle, President of Delaware Funds by Macquarie and Head of Macquarie Team in the Americas, added: “This transaction is an crucial action forward in our progress approach for Delaware Money by Macquarie. The acquisition of Waddell & Reed’s asset management company and our partnership with LPL considerably strengthens our position as a prime 25(1) US actively managed, lengthy-time period, open-finished mutual fund manager across equities, fastened income and multi asset answers.”
The transaction has been authorised by the Boards of Administrators of LPL Fiscal, Macquarie Group, and Waddell & Reed and is predicted to shut in the center of 2021, matter to regulatory approvals, Waddell & Reed stockholder approval, and other customary closing disorders.
LPL Economical posted an investor presentation with an overview of the transaction on its Investor Relations webpage at investor.lpl.com.
Centerview Partners LLC served as exceptional monetary advisor and Ropes & Gray LLP served as special authorized advisor to LPL in link with the transaction.
About LPL Money
LPL Financial (https://www.lpl.com) is a leader in the retail economical suggestions market, the nation’s biggest independent broker/dealer(+) and a main custodian (or supplier of custodial services) to RIAs. We serve independent monetary advisors and financial institutions, delivering them with the know-how, analysis, clearing and compliance providers, and practice management packages they want to make and improve thriving techniques. LPL permits them to supply aim direction to hundreds of thousands of American people searching for prosperity administration, retirement planning, economical organizing and asset administration options.
(+)Primarily based on total revenues, Monetary Arranging journal June 1996-2020.
Securities and Advisory Solutions made available through LPL Financial LLC, a Registered Expenditure Advisor. Member FINRA/SIPC. We routinely disclose facts that may possibly be critical to shareholders in the “Investor Relations” or “Press Releases” section of our web-site.
About Waddell & Reed Money
As a result of its subsidiaries, Waddell & Reed Money, Inc. has provided financial investment administration and wealth management providers to purchasers throughout the United States given that 1937. Nowadays, Waddell & Reed Economical distributes its investment decision solutions via the unaffiliated channel below the Ivy Investments(R) brand (encompassing broker/vendor, retirement, and registered investment decision advisors), its wealth administration channel (through unbiased money advisors connected with Waddell & Reed, Inc.), and its institutional channel (which include outlined profit designs, pension plans, endowments and subadvisory interactions). For extra data, take a look at ir.waddell.com.
About Macquarie Asset Administration
Macquarie Asset Administration (MAM) is Macquarie’s asset management company. MAM is a comprehensive-provider asset manager, supplying expense options to customers across a assortment of abilities which includes infrastructure & renewables, genuine estate, agriculture, transportation finance, personal credit rating, equities, mounted revenue, and multi-asset methods. As of September 30, 2020, MAM experienced $A554.9 billion of property less than management. MAM has over 1,900 personnel functioning across 20 marketplaces 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, through a predecessor organization, formerly identified as Delaware Investments.
| (1) | Source: Property beneath management as of Sept. 30 – Centered on info represented in Strategic Perception and Morningstar. Facts features ICI Technique of Income: Salesforce, Institutional and Retirement. Details excludes Variable Insurance plan Products, Shut End Money, ETFs, passive mutual resources, Income Sector Funds, Delaware Pooled Trusts, and Ideal Resources. |
Ahead-Wanting Statements
Statements in this press release with regards to LPL Financial Holdings Inc. (alongside one another with its subsidiaries, such as LPL Economic LLC, the “Business” or “LPL Economic”) and its potential development, company strategy and designs, including the expected benefits of Macquarie Group’s acquisition of Waddell & Reed Economic, Inc. (jointly with its subsidiaries, “Waddell & Reed”) and LPL Financial’s acquisition of Waddell & Reed’s prosperity management company and partnership with Macquarie Team, as properly as any other statements that are not relevant to existing info or existing problems or that are not purely historic, constitute ahead-hunting statements. These ahead-seeking statements are centered on the historical effectiveness of the Enterprise and Waddell & Reed and the Company’s options, estimates and anticipations as of December 2, 2020. Forward-on the lookout statements are not guarantees that the upcoming success, programs, intentions or expectations expressed or implied by the Enterprise will be obtained. Matters subject matter to forward-looking statements contain recognised and mysterious threats and uncertainties, like financial, legislative, regulatory, competitive and other elements, which may lead to levels of belongings serviced, actual fiscal or operating success, degrees of action or the timing of events to be materially distinctive than individuals expressed or implied by ahead-on the lookout statements. In certain, the Firm can give no assurance that the assets documented as serviced by financial advisors affiliated with Waddell & Reed (“Waddell & Reed Advisors”) will translate into assets serviced by LPL Economical, that Waddell & Reed Advisors will be part of LPL Economic, or that the benefits that are anticipated to accrue to LPL Money, Waddell & Reed, Macquarie Team and their respective advisors and stockholders as a outcome of the transactions described herein will materialize. Vital factors that could induce or contribute to these kinds of dissimilarities include: failure of the parties to fulfill the closing circumstances applicable to the acquisitions described herein in a timely fashion or at all, together with 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 bare minimum property prior to closing disruptions to the parties’ firms as a final result of the announcement and pendency of the transactions, complications and delays in recruiting Waddell & Reed Advisors or onboarding the consumers or companies of Waddell & Reed Advisors the incapacity by the Business to maintain profits and earnings expansion or to thoroughly notice revenue or expense synergies or the other anticipated added benefits of the transactions, which rely in component on the Company’s accomplishment in onboarding belongings at the moment served by Waddell & Reed Advisors disruptions of the Company’s or Waddell & Reed’s small business because of to transaction-connected uncertainty or other aspects building it much more tough to manage interactions with its financial advisors and their customers, personnel, other organization companions or governmental entities the inability to put into practice onboarding programs and other consequences affiliated with acquisitions the choice by purchasers of Waddell & Reed Advisors not to open brokerage and/or advisory accounts at LPL Economic or go their belongings from Waddell & Reed to LPL Fiscal unexpected liabilities arising from the acquisition of Waddell & Reed’s wealth administration subsidiaries variations in typical economic and fiscal market place problems, which includes retail trader sentiment fluctuations in the worth of property beneath custody consequences of opposition in the financial providers marketplace, like competitors’ results in recruiting Waddell & Reed Advisors and the other variables set forth in Part I, “Merchandise 1A. Risk Things” in the Firm’s 2019 Yearly Report on Type 10-K and any subsequent SEC filing. Besides as necessary by law, the Company exclusively disclaims any obligation to update any ahead-searching statements as a consequence of developments happening after the day of this press launch, even if its estimates transform, and you should not rely on these statements as representing the Company’s sights 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]
COMTEX_375425660/2471/2020-12-02T17:01:42
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