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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Organic Growth Is the New Scarcity Premium
Organic Growth Is the New Scarcity Premium
Organic growth is emerging as the most valuable differentiator in the RIA industry, offering evidence of a firm's ability to attract clients, generate revenue, and create enterprise value independent of market performance or acquisitions. Firms that build repeatable and transferable growth engines are increasingly positioned to command stronger valuations, succession outcomes, and transaction terms.
Why RIA Owners Often Wait Too Long to Sell
Why RIA Owners Often Wait Too Long to Sell

The Risk You Know

Many RIA owners delay selling because current conditions feel stable and the future feels uncertain. The risks may not be as balanced as they appear.
If You’re Not Succession Planning, Then Plan for Secession
If You’re Not Succession Planning, Then Plan for Secession
Succession planning within RIAs is increasingly tied to talent retention, client continuity, and long-term enterprise value. Firms that fail to provide clear leadership and ownership pathways risk losing key advisors, and the relationships and revenue tied to them.

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