Matthew R. Crow, ASA, CFA, president of Mercer Capital, was recently quoted in two RIABiz articles on the Focus Financial IPO.
In the article “In another go-go sign, Focus Financial moves up IPO trade date to as early as Monday,” Matt comments on Focus’ IPO happening sooner rather than later.
Focus Financial Partners’ initial public offering is ahead of schedule and ready to take bids. According to the article, a Nasdaq IPO listing is set for July 26th versus the original trade date of July 30th or 31st. Matt comments, “If the bankers have full order books and everyone’s satisfied with the price, there’s no upside in waiting.” He continues, “The S-1’s been out for two months, so there’s been more than adequate time for investor due diligence.”
A few days later, Matt comments in the story “Focus Financial conscripts Fidelity to bombard RIA principal/prospective clients with IPO solicitations while one research shop waves a yellow flag.”
RIAs can purchase Focus Financial Partners’ shares at a “first-tick” price through Fidelity Investments as a part of a directed program to encourage RIAs to sell to Focus later down the road. “This may simply be a distribution channel to open the [Focus] offering up to a broader base,” Matt says. One source believes Focus and Fidelity are taking a risk by including RIA perspective partners in an offering. “I don’t necessarily agree that the success or lack thereof of Focus reflects on Fidelity one way or other.”
Mercer Capital’s Asset Management practice provides RIAs, trust companies, and investment consultants with corporate valuation, financial reporting valuation, transaction advisory, portfolio valuation, and related services. Our industry blog, RIA Valuation Insights, is updated weekly with commentary on issues important to the Asset Management industry. We will continue to follow the future developments related to Focus Financial’s IPO.