Corporate Valuation, Investment Management

September 5, 2017

Recent Trends in Asset Management

This week, we’re sharing some recent media on trends in asset management and the outlook for M&A activity.  Most industry observers foresee an uptick in asset manager dealmaking as rising costs, asset outflows, and a heightened interest from consolidators incent many firms to pull the trigger on a sale or business combination with another RIA.    

Global Asset Management 2017 – The Innovator’s Advantage

by The Boston Consulting Group BCG provides a detailed profile of the RIA industry, M&A trends, growth opportunities in a passive environment, and optimizing investment management for the digital age.

Latest Mercer Move Highlights Hot M&A Demand for Smaller Firms

by Charles Paikert Though no relation to our firm, Mercer Advisors recently announced its fourth asset manager deal of the year, underscoring the desirability of smaller RIAs in a seller’s market.

Skill through Scale?  The Role of M&A in a Consolidating Industry – Investment Management M&A Outlook

by Casey Quirk, a practice of Deloitte Consulting LLP Casey Quirk sees brisk M&A activity continuing in 2017 and beyond as a result of deteriorating economics, distributor consolidation, the need for new capabilities, and a shifting value chain.

Asset Manager Deal Wave Has Just Begun

by Aaron Black This Wall Street Journal piece predicts continued consolidation in the RIA space as struggling active managers combine to stem the tide of asset outflows.

Minority Stake Sales Prop Up Investment Management Dealmaking Activity

by Joe Mantone This recent piece by S&P Global Market Intelligence examines the heightened level of minority investments in asset managers in the context of slowing M&A volume for the sector.

Renewed Appetite – Alts Manager M&A Heats Up

by KPMG With the continued “bar-belling” of investors’ portfolios and strong demand for alternative strategies in the current low-growth, low-yield environment, KPMG sees renewed appetite for dealmaking involving hedge funds and private equity firms. As always, we are available to continue any of the above discussion further. Don't hesitate to call us.

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Not All AUM Is Created Equal
Not All AUM Is Created Equal

Why Product Mix Matters in Investment Manager Valuation

Investment manager valuation depends on more than headline AUM. Fee rates, revenue durability, product-level growth, margins, and operating leverage all influence the quality of an asset base and the cash flows it can generate.
RIA Valuation Insights Blog Investment Management
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Changing Drivers
Changing Drivers

Thoughts on Compensation, Ownership, and Internal Succession

Successful RIA succession requires leadership, compensation, and ownership to evolve together over time. A gradual transition can align incentives, improve continuity, and give both senior and next-generation leaders meaningful participation in the firm’s future value.
RIA Valuation Insights Blog Investment Management
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The Sponsor Clock: What the Recapitalization Cycle Means for RIA Sellers Holding Rolled Equity
The Sponsor Clock: What the Recapitalization Cycle Means for RIA Sellers Holding Rolled Equity
Private equity sponsor timelines are bringing a new wave of recapitalizations to RIA platforms, with important implications for principals holding rolled equity. Understanding liquidity rights, valuation mechanics, and the timing of capital events can be critical to both transaction and wealth transfer planning.

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