The deal adds to 2021’s record-setting pace for adviser industry mergers and acquisitions, while underscoring the emerging competitive pressures facing even sizable independent firms.
While there is still a learning curve when it comes to advisers understanding their role in the pooled employer plan marketplace, providers entering the space say the future is bright.
Strong market conditions, increased competition from buyers and favorable deals for sellers laid the foundation for the activity, according to the latest data published by Echelon Partners.
The sizable transaction exhibits the continued interest of private equity firms in the advisory and asset management space, while marking 2021 as a year of rapid M&A action that will almost certainly set a new record.
Most firm owners say they would prefer to ‘sell and stay’ for a defined period of time after a deal closes—and ultimately participate in the growth opportunities created by the combined entities.
Data from Echelon Partners shows the number of adviser or adviser team ‘breakaways’ declined by nearly 20% in 2020 versus 2019. However, 2019 set the record for breakaway activity.
PLANADVISER has learned that HUB International has named Joe DeNoyior as the new leader for Retirement and Private Wealth.
The acquisition is expected to be one of many that HUB will enact in 2021.
The average deal size grew significantly, as new players have flocked to the retirement advisory and wealth management industry over the past year.
Compass Financial is the latest firm recognized in the PLANADVISER Top 100 listing to be acquired by a large, diversified financial services entity.
SageView’s newly announced private equity backing underscores the same pressures and opportunities that have been reshaping the retirement plan adviser industry for years.
Apart from the influence of the coronavirus pandemic, few retirement plan adviser industry trends received more headlines this year than the pace of mergers and acquisitions.
Though the whole year and the final quarter, especially, have already delivered impressive numbers, there are expectations that some additional major transactions could soon be announced.
Adding to a busy year of acquisitions for the aggregator firm, this will be CAPTRUST’s first location in Colorado.
The pandemic-triggered recession has not slowed down merger and acquisition activity in this space, as yet another PLANADVISER Top 100 firm has been acquired by HUB International.
The move to acquire Eaton Vance, a provider of investment strategies and wealth management solutions, underscores Morgan Stanley’s goal to create a holistic advisory, investment management and brokerage shop.