IFA Magazine’s Post

The independent wealth management sector is undergoing a dramatic transformation as consolidation accelerates. Mergers, acquisitions, and the growing influence of private equity and sovereign wealth funds are reshaping the industry.

How big is big enough? James Cahn of Wealth Enhancement Group once thought his firm would never have $5 billion under management. Then the unimaginable figure became $10 billion. With its AUM now pushing $95 billion, Cahn thinks that aggregators like his firm are where RIAs will eventually have to end up if what they want is growth. #acquisitions #wealthmanagement #RIAs

Is going public the goal?: In recent years, several large enterprises in wealth management have delisted with private investment, reflecting a non-linear view of capital structures that doesn’t assume going public is the pinnacle of capital structure evolution. We discuss this trend with Joe Duran of Rise Growth Partners, Joe Faber of Steward Partners, Bruce Cameron of Berkshire Global Advisors and Gilbert Dychiao of Oppenheimer & Co. Inc. READ MORE: https://lnkd.in/gum6_S7P #WealthSolutionsReport #WealthManagement #mergers #FinancialAdvisors

Gilbert Dychiao, Managing Director & Head of Financial Institutions Investment Banking, spoke to Wealth Solutions Report about the evolution of wealth management enterprises and the various paths and sources of capital available to them as they execute on their long-term strategies. He emphasized, now more than ever, wealth managers have many attractive options across both public and private markets.   Check out the full article below to learn more.

In Q1 2024, RIA M&A activity remained robust, reflecting the fast-paced nature of our industry. If you're contemplating partnership, we know experience matters! Over 8️⃣5️⃣ RIA firms have trusted Mercer Advisors as their partner of choice. Dive deeper into the current dynamics on WealthManagement.com 👇 #mergersandacquisitions #acquisition #merceradvisors #mergers #ria #wealthmanagement

This article by Julius Buchanan of Wealth Solutions Report does a great job in revisiting the conventional narrative on public market IPOs insofar as the wealth management space goes. The idea that a company’s capital structure journey is linear and that “going public” is the ideal end point for firms to be considered truly successful merits further debate and discussion. Since Sarbanes Oxley, the complexities of being a publicly traded enterprise have continued to rise, even as sources of private capital funding for wealth management enterprises have multiplied beyond traditional private equity firms that operate on a 3-5 year holding period. Check out commentary from both Bruce Cameron of Berkshire Global Advisors and Gilbert Dychiao of Oppenheimer & Co. Inc. for more insights on this topic!

Private equity firms and wealth management corporations have forged a formidable alliance, reshaping the landscape of wealth management. In 2023, sponsor buyouts accounted for a remarkable 78% of all mergers and acquisitions in the sector, indicating a compelling opportunity driven by technology, consolidation, and regulatory changes. This trend has enabled wealth management firms to accelerate growth, streamline operations, and stay competitive. Experts predict further integration, anticipating more innovation and growth as these sectors converge. Private equity's transformative impact is prompting traditional firms to adapt, diversify, and enhance client engagement. #PrivateEquity #Insights #Growth #WealthManagement #Buyouts #PlacementAgent #TritonLake https://lnkd.in/e3Mhjf22

Some interesting parallels here vis-a-vis the accounting industry, which is seeing a similar thread of interest from private equity GPs. Some of the drivers may be different in each case - but more in common than not... #privateequity #weathmanagement #accounting #tritonlake

The first half of 2024 presented a mixed landscape for private markets. Mergers and acquisitions activity increased by 12% YoY, yet is still 50% below the highs of 2020 and 2021. Despite slight improvements in liquidity and easing macroeconomic headwinds, new platform deals remain slow. Check out our recent blog post to gain further insight into the trends shaping the private equity landscape. #PrivateEquity #MergersAndAcquisitions

“The desire (or need) for founding advisor partners to implement their personal succession plans remains a driving force in continued deal-making.” - Mike Papedis Read the latest succession planning and deal making insights from Fusion CEO, Mike Papedis, Larry Roth CPA, JD, Bomy Hagopian, CFA and Alex Goss, CFP® in Alternatives Watch. #ria #successionplanning #dealmaking #independence #acquisitions