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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Five Takeaways from Dimensional Fund Advisors’ Deals and Succession Conference
Five Takeaways from Dimensional Fund Advisors’ Deals and Succession Conference
Our team attended Dimensional’s Deals and Succession Conference in Charlotte this week, where industry leaders gathered to discuss the evolving M&A and succession landscape. While activity remains strong, this year’s conversations centered more on growth quality, equity structure, leadership depth, and cultural alignment than on deal volume alone.
Are IPOs in the Future for Wealth Management?
Are IPOs in the Future for Wealth Management?

Private Enthusiasm, Public Skepticism

There is a quiet irony developing in wealth management. Private equity firms continue to pay premium, sometimes nosebleed, prices for large RIA platforms. Acquisition funding continues to be available and consolidators keep consolidating. Even as private market exits have slowed and fundraising has become more difficult, sponsors remain willing to commit fresh capital to the sector. At the same time, public markets have shown only modest enthusiasm for investment management businesses.
The Silent Risk in Many RIA Succession Plans
The Silent Risk in Many RIA Succession Plans
In this article we discuss four of the most common “silent risks” embedded in otherwise well-intentioned succession plans.

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