Thursday’s Headlines: RIA Deals Soar in Number and Size
Registered investment advisory firms are a hot commodity these days, according to Investment News. The online publication reports that in the first quarter this year, the industry experienced 17 mergers or acquisitions involving $24 billion in assets, with wire-house breakaways counting for nearly half the deals, followed by RIA firms.
In 2011, just $43.9 billion changed hands in 57 transactions for the entire year. The average deal size jumped up in the first quarter to $1.4 billion in managed assets, up from $798 million in 2011 and $895 million in 2010.
The figures come from Charles Schwab, which interpreted these figures as a reason to be “cautiously optimistic” about a sector rebound.
During the quarter, Affiliated Managers Group bought an equity stake in Veritable, one of the largest RIA firms. AMG this week announced that it is purchasing a majority stake in Yacktman Asset Management.
Morgan Stanley’s Q1 revenue was down 8 percent on an accounting charge. [NY Times]
BofA’s Q1 revenue fell 17 percent on an accounting charge. [WSJ]
Blackstone’s Q1 profit fell 24 percent on slower asset growth, while assets under management jumped 27 percent. [DealBook]
Potential buyers for ING’s Asian asset management unit include Sumitomo Mitsui and Invesco. [Bloomberg]
Citi shareholder revolt against executive pay infects regional banks. [WSJ]
RIM is close to choosing Morgan Stanley as an advisor for its turnaround strategy. [Businessweek]
Private equity deals in China rose to $15.2 billion last year from $13.9 billion and the average deal size grew. [WSJ]
KKR’s new real estate unit made its first investment: a suburban Chicago shopping mall for $196 million. [Dow Jones]
BlackRock will move some business away from certain firms if Moody’s downgrades those banks. [NY Times]
William Ackman of Pershing Square Capital plans to raise money for the new fund on a public exchange in January 2013. [Financial Times]
HSBC’s maiden yuan-denominated bond doubled from initial plans to 2 billion yuan, or $317.3 million. [Dow Jones]
JHS Capital of Tampa, Fla., has transitioned 70 of the 75 registered representatives from Paulson Investments, the Portland, Ore. firm it recently acquired. [Investment News]