Home News LPL Financial to Buy Waddell & Reed’s Wealth Management Business

LPL Financial to Buy Waddell & Reed’s Wealth Management Business

LPL Financial, the nation’s largest independent broker-dealer, has entered into an agreement with Macquarie Asset Management to buy the wealth management business of Waddell & Reed Financial Inc.

LPL Financial, the nation’s largest independent broker-dealer, has entered into an agreement with Macquarie Asset Management to buy the wealth management business of Waddell & Reed Financial Inc. (NYSE: WDR). Macquarie plans to buy all of the issued and outstanding common shares of Waddell & Reed, and upon closing, sell the wealth management portion of the business to LPL for $300 million.

Macquarie Asset Management is the asset management division of Australia-based Macquarie Group (ASX: MQG) and has $411.5 billion in assets under management.

Through its subsidiaries, Waddell & Reed has provided investment management and wealth management services to clients throughout the U.S. since 1937. Its investment products are distributed under the Ivy Investments brand, as well as through its independent financial advisors. As of September 30, 2020, Waddell & Reed’s wealth management business had assets under administration of approximately $63 billion, up 10 percent year-over-year.

Additionally, LPL and Macquarie have entered into a “long-term partnership,” with Macquarie becoming one of LPL’s “top tier strategic asset management partners.”

LPL said that the partnership with Macquarie “will provide existing Waddell & Reed advisors and clients with continuity, as well as longer-term opportunities through partnership with a leading international asset manager.”

“Waddell & Reed advisors are highly experienced and well-respected throughout the industry,” said Dan Arnold, LPL’s president and chief executive officer. “They are a terrific fit both culturally and strategically, and we welcome them to the LPL family. Looking ahead, we expect our capabilities and resources will benefit their practices and help them unlock additional value and growth.

The transaction has been approved by the boards of LPL, Macquarie Group, and Waddell & Reed and is expected to close in the middle of 2021.

LPL Financial provides service to approximately $810 billion in brokerage and advisory assets as of September 30, 2020. The company provides proprietary technology, clearing services, practice management programs and training, and independent research to 17,168 financial advisors.

Click here to visit The DI Wire directory sponsor page.