Waddell & Reed's wealth management platform was sold to LPL Financial, a leading financial services company. This sale marked a significant shift in the company's strategy and operations.
LPL Financial acquired Waddell & Reed's wealth management platform, expanding its capabilities and offerings in the process. The acquisition added a new layer of expertise and resources to LPL Financial's existing platform.
The sale of Waddell & Reed's wealth management platform to LPL Financial was a major development in the financial services industry. It highlighted the ongoing trend of consolidation and strategic partnerships among major players.
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Wealth Management Platform Acquired by LPL Financial
LPL Financial has acquired Waddell & Reed's wealth management division for $300 million.
The purchase price is a significant one, considering the division's historical performance.
Waddell & Reed's wealth management division was a substantial part of the company's business, generating around 90% of its underwriting revenue through its advisor network.
Post-transaction, Macquarie Group, the parent company of Waddell & Reed, will be one of LPL's top strategic asset management partners, likely retaining some of the revenue associated with its advisor network.
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The sale of the wealth management division is expected to generate cost savings for Macquarie Group, with estimates ranging from 50% to 60%.
This deal highlights the value of scale in the asset management space, where companies like Macquarie Group are willing to pay a premium for businesses with significant assets under management.
Company Information
Waddell & Reed is a financial services company founded in 1937 by Charles B. Waddell and Ned H. Johnson.
The company's headquarters is located in Overland Park, Kansas, a suburb of Kansas City.
Waddell & Reed has been a subsidiary of Waddell & Reed Financial, Inc. since 1996.
The company offers a range of financial services and products, including investment management and brokerage services.
Waddell & Reed has a strong presence in the financial services industry, with a long history of providing investment advice and portfolio management services to individuals and institutions.
The company's website is a valuable resource for investors, offering a wealth of information on investment products and services.
Waddell & Reed has a large network of financial advisors and representatives across the United States.
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Frequently Asked Questions
What does Waddell and Reed do?
Waddell & Reed offers investment management and financial planning services to clients across the United States. They help individuals and families achieve their financial goals through expert guidance and personalized support.
Who took over Ivy investments?
Ivy Investments was acquired by Macquarie Asset Management in 2021, following the takeover of its parent company Waddell & Reed. Macquarie Asset Management now oversees Ivy Investments.
Sources
- https://www.napa-net.org/news/2020/12/lpl-picks-waddell-reed-wealth-mgmt-biz-macquarie-deal/
- https://www.macquarie.com/au/en/about/news/2021/macquarie-group-completes-acquisition-of-waddell-and-reed-financial.html
- https://www.yelp.com/brands/waddell-reed
- https://mercercapital.com/riavaluationinsights/did-macquarie-pay-11x-ebitda-for-waddell-reed-yes-and-no/
- https://www.financierworldwide.com/macquarie-group-acquires-waddell-reed-in-17bn-deal
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