Let’s Make a Deal! M&A Involving RIAs in 2019 Surged 60% – & Doubled From 2017 – to Reach a New Record High, says FA In...
January 15 2020 - 7:00AM
Business Wire
Acquirers from across the industry fueled the
surge, including an increase in first-time buyers
Obliterating previous records, mergers and acquisition activity
among registered investment advisors (RIAs) surged to new highs in
2019, according to the FA Insight Mergers & Acquisitions
Activity: 2019 Year-End Update from TD Ameritrade
Institutional.1
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20200115005126/en/
Total Transaction Announcements,
2011-2019 (Graphic: FA Insight, from TD Ameritrade
Institutional)
After an extremely active first half of the year, M&A
activity continued its record-setting pace, according to FA
Insight.2 In total, advisory firms in 2019 announced 144
transactions. That figure is double the 72 deals announced in 2017
and a 60 percent increase over 2018, the previous record year. In
all, the advisory firms that were merged or acquired managed a
total of $156 billion in assets, up 66 percent over 2018 and 23
percent higher than the previous record of $127 billion set in
2015.
Repeat buyers led the charge in acquisitions in 2019, accounting
for 59 percent of the deal announcements. Among those completing
multiple transactions, seven firms entered four or more deals,
accounting for a quarter (26 percent) of the total transactions.
Mercer Advisors was the most active, announcing 11 deals last
year.
“All the stars were aligned for driving robust levels of M&A
among advisory firms: historically low interest rates, an influx of
private equity, healthy RIA profits and valuations, and aging
leadership searching for an exit or succession strategy,” said Pete
Dorsey, Managing Director of Sales and Client Management at TD
Ameritrade Institutional. “Mix all these ingredients together and
you may have an ideal environment for more M&A activity. We
could see another strong year for M&A again in 2020 and perhaps
beyond.”
Among the largest deals by assets under management (AUM), TA
Associates acquired a major equity stake in the $11.8 billion AUM
Wealth Enhancement Group from Lightyear Capital, while 1251 Capital
Group and Management, announced intentions to acquire a majority
stake in $10.5 billion AUM Ziegler Capital Management.
For a copy of the FA Insight 2019 M&A report, please visit
www.fainsight.com.
Methodology The FA Insight M&A Database tracks
U.S.-based RIAs or independent trust companies that have been
acquired or merged into another firm. The “target” firms sold or
merged into another must directly serve households or individual
clients and they must manage at least $50 million in AUM or
generate at least $500,000 in annual revenue. Transactions also
must involve an exchange of equity with an outside party
representing 10 percent or more of the target firm’s value.
The database excludes firms with more than $20 billion in AUM,
transactions targeting independent broker-dealers, internal
transitions of ownership, as well as individuals or teams joining a
firm.
1 TD Ameritrade Institutional is a division of TD Ameritrade,
Inc., a brokerage subsidiary of TD Ameritrade Holding Corporation.
2 FA Insight is a product of TD Ameritrade Institutional and a
trademark owned by TD Ameritrade IP Company, Inc.
About TD Ameritrade Holding Corporation TD Ameritrade
provides investing services and education to more than 12 million
client accounts totaling approximately $1.3 trillion in assets, and
custodial services to more than 7,000 registered investment
advisors. We are a leader in U.S. retail trading, executing an
average of approximately 800,000 trades per day for our clients,
more than a quarter of which come from mobile devices. We have a
proud history of innovation, dating back to our start in 1975, and
today our team of 10,000-strong is committed to carrying it
forward. Together, we are leveraging the latest in cutting edge
technologies and one-on-one client care to transform lives, and
investing, for the better. Learn more by visiting TD Ameritrade’s
newsroom at www.amtd.com, or read our stories at Fresh
Accounts.
About TD Ameritrade Institutional TD Ameritrade
Institutional empowers more than 7,000 independent registered
investment advisors to transform the lives of their clients. It
provides powerful technology and resources that help simplify
running a business and let advisors spend more time doing what
matters most — serving their clients. Through meaningful
innovation, steadfast advocacy and unwavering service, TD
Ameritrade Institutional supports RIAs as they build businesses
that positively impact their clients and communities.
Brokerage services provided by TD Ameritrade, Inc., member FINRA
(www.FINRA.org) / SIPC (www.sipc.org) .
Third party firms mentioned are separate from and not affiliated
with TD Ameritrade.
Source: TD Ameritrade Holding Corporation
BI# 1278211
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200115005126/en/
Mark Gyorfy TD Ameritrade Communications & Public Affairs
(201) 369-5772 mark.gyorfy@tdameritrade.com
TD Ameritrade (NASDAQ:AMTD)
Historical Stock Chart
From Apr 2024 to May 2024
TD Ameritrade (NASDAQ:AMTD)
Historical Stock Chart
From May 2023 to May 2024