Jan 21,
2020
Lovell Minnick Partners Makes Majority Investment in Charles Taylor
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01.21.20
Lovell Minnick Partners Makes Majority Investment in Charles Taylor
PHILADELPHIA, LOS ANGELES and NEW YORK – JANUARY 21, 2020 - Lovell Minnick Partners, a private equity firm focused on investments in the global financial services industry, including related technology and business services companies, today announced that it has completed a majority investment in Charles Taylor, the provider of services and technology solutions to the global insurance market. The acquisition will support the continuation of Charles Taylor's successful growth strategy, with a focus on expanding client relationships, broadening specialist capabilities and the range of services and technology solutions, deepening geographic coverage, and reinvesting in quality of service and technology. The acquisition marks the next step in Charles Taylor’s long and distinguished history and builds on its success over recent years. In the last five years, Charles Taylor has increased revenue by 115% and adjusted EBITDA by 97%, tripled its global headcount to around 3,100, and developed multiple new services and technology solutions for its clients across the global insurance market. Lovell Minnick has committed to supporting Charles Taylor’s clients and to drive the delivery of Charles Taylor’s successful growth strategy, ensuring the future success of Charles Taylor for employees, partners and clients. Accordingly, Charles Taylor and Lovell Minnick will work together to: • Grow Charles Taylor’s Adjusting, Medical Assistance and other Claims Services businesses across the globe • Support the sustainable growth of Charles Taylor’s Insurance Management clients • Further develop Charles Taylor’s InsureTech business. Charles Taylor’s existing experienced management team remains in place; there is no intention to make any changes to management structures or reporting lines as a result of this transaction. David Marock, Group Chief Executive Officer, Charles Taylor, said, “I am excited to announce the completion of this acquisition, and believe that it is positive news for Charles Taylor, its clients, partners and staff. Throughout its history and irrespective of its ownership, Charles Taylor’s achievements have always been founded on its people, innovation and a commitment to excellent client service. Lovell Minnick understands these foundations, and I welcome their commitment to working with the management team to drive the business forward over the next stage of its history.” Jason Barg, partner of Lovell Minnick, said, “We share a vision with the Charles Taylor team to continue supporting its clients, further advancing the ways in which we can support them, while further growing the platform over years to come.” Spencer Hoffman, partner of Lovell Minnick, added, “Charles Taylor is a high-quality business, operating in a sector in which we have extensive experience. We are delighted to support the management team in continuing the development of the business they have built over the past years.” About Charles Taylor Charles Taylor is a global provider of professional services and technology solutions dedicated to enabling the global insurance market to do its business fundamentally better. Dating back to 1884, Charles Taylor now employs approximately 3,100 staff in more than 120 locations spread across 30 countries in Europe, the Americas, Asia Pacific, the Middle East and Africa. Charles Taylor believes that it holds a distinctive position in its markets in that it is able to provide professional services and technology solutions in order to support every stage of the insurance lifecycle and every aspect of the insurance operating model. Charles Taylor serves a diversified blue-chip international customer base that includes national and international insurance companies, mutuals, captives, MGAs, Lloyd's syndicates and reinsurers, along with brokers, distributors and corporate insureds. Further information is available at www.charlestaylor.com
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Dec 17,
2019
Lovell Minnick Partners Makes Significant Growth Investment in Fortis Payment Systems
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12.17.19
Lovell Minnick Partners Makes Significant Growth Investment in Fortis Payment Systems
Accelerates Expansion of Payments Technology into New Markets PHILADELPHIA, LOS ANGELES and NEW YORK – DECEMBER 17, 2019 – Lovell Minnick Partners, a private equity firm focused on investments in the global financial services industry, including related technology and business services companies, today announced that it has completed a significant growth investment in Fortis Payment Systems, LLC (“Fortis” or the “Company”), a payments technology and merchant services provider. Financial terms of the private transaction were not disclosed. Headquartered in Novi, Michigan, Fortis provides payment technology and processing capabilities to developers and businesses throughout North America. The Company’s proprietary payments platform, Zeamster, creates integrated commerce experiences for software and ERP providers as they transform the way businesses interact with their customers. “Fortis has developed a highly configurable, powerful payments platform with industry-leading technical and security capabilities, supported by superior high touch service,” said Trevor Rich, Partner at Lovell Minnick Partners. “We look forward to supporting CEO Jimmy Nafso and his highly talented team to identify new solutions and channel partners.” Since its founding in 2010, the Company has been a market leader in developing vertical specific solutions and integrating with point of sale software and ERP providers in numerous end markets. Fortis supports hundreds of developers, software providers, and channel partners and provides services to merchants throughout North America. “We’re excited to leverage Lovell Minnick’s strong track record of scaling technology-businesses. With Lovell Minnick’s support we will be able to accelerate Fortis’ expansion into additional markets and continue innovating best-in-class payments solutions that meet the evolving needs of our customers,” said Nafso. “With Lovell Minnick as our new partner, our clients should remain assured that we will continue to provide ‘white glove’ customer service and innovative technology, which have been core to our value proposition since inception.” “Jimmy and his leadership team have an excellent reputation in the payments industry. Their customer-centric approach is truly unique and the Zeamster micro-services platform is cutting edge with features to support a wide variety of businesses,” said Greg Cohen, an Operating Partner at Lovell Minnick and former president of the Electronic Transactions Association. Lovell Minnick’s Trevor Rich and Greg Cohen will be joining the Fortis Board of Directors. Sidley Austin LLP served as legal advisor and the Strawhecker Group served as payments advisor to Lovell Minnick. Butzel Long was counsel to Fortis. About Fortis Payments SystemsFortis Payments (Fortis) provides payments technology and merchant solutions to businesses and software developers across North America. Fortis has a focus on technology enabled solutions through a White Glove service approach and a mission to help small and mid-sized businesses scale through innovation. Fortis’ Zeamster platform provides state-of-the-art connectivity solutions for hundreds of software developers and channel partners. Fortis provides payments and financial technology solutions to thousands of businesses processing billions of dollars annually. For more information, please visit https://www.fortispayments.com/.
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Nov 25,
2019
Foreside Announces Agreement to Acquire Fund Distributor Quasar Distributors, LLC
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11.25.19
Foreside Announces Agreement to Acquire Fund Distributor Quasar Distributors, LLC
PORTLAND, Maine – November 25, 2019 – Foreside Financial Group, LLC (“Foreside”), a provider of regulatory and compliance service and technology offerings to clients in the global asset and wealth management industry, today announced its intent to acquire U.S. Bancorp’s mutual fund and exchange-traded funds (“ETFs”) distribution business, Quasar Distributors. The transaction is expected to close sometime in the first quarter of 2020. The acquisition will make Foreside one of the largest third-party fund distributors globally. The acquisition will also expand Foreside’s internal team and client base, with the addition of more than 200 current Quasar clients, 26 employees and a new office location in Milwaukee, WI. With over $1 trillion in assets under distribution, Foreside continues to grow its market share rapidly. The transaction will introduce Foreside’s customizable compliance solutions and outsourcing support to all current Quasar clients, while strongly focusing on expanding Foreside’s broker-dealer capabilities, including dealer clearing services. “Foreside is excited for the potential this acquisition provides to broaden our wide range of compliance and regulatory service offerings to clients based all over the U.S.,” said Dave Whitaker, President of Foreside. “Our inorganic growth continues to fuel our organic growth, as acquisitions like this one allow us to expand our service offerings and provide better strategic counsel and service to our clients.” Quasar’s current clients range from small to large asset management firms, focused on mutual funds and ETFs. Quasar has carved out a niche during the past 20 years that has opened it up to growth opportunities outside of U.S. Bancorp. “With Foreside’s investment and core capabilities in the mutual fund and ETF distribution space, Quasar should thrive while remaining true to its strengths. We have historically had a strong working relationship with Foreside and expect that relationship to continue into the future given the complementary nature of our businesses. We appreciate the hard work and dedication the Quasar team has shown during the years and wish them all the best as they transition to Foreside,” said Joe Neuberger, head of U.S. Bank Global Fund Services. “For us, the deal furthers our efforts to focus on our core competencies and grow strategically to create value for employees, customers, communities and shareholders.” This is Foreside’s third acquisition in 2019. The firm acquired Compliance Advisory Services, a leading regional compliance firm, in October, and NCS Regulatory Compliance, a comprehensive provider of outsourced compliance and regulatory services, in January. About Foreside Foreside delivers comprehensive advice and best-in-class technology solutions to clients in the global asset and wealth management industries. Foreside distributes more than $1 trillion of product through their 20 limited purpose broker-dealers. For 15 years, Foreside’s suite of services and platform-based model have helped automate and simplify compliance and marketing for clients. Foreside works with pooled investment products, investment advisors, broker-dealers, global asset managers and other financial institutions. By harnessing state-of-the-art technology, Foreside helps firms address and shape today’s regulatory environment, drive operational efficiency and growth, and focus on value-adding work. Foreside is headquartered in Portland, Maine, with numerous regional offices, including New York and Boston. For more information on Foreside’s suite of services, please visit www.foreside.com. About U.S. Bancorp U.S. Bancorp, with 74,000 employees and $488 billion in assets as of September 30, 2019, is the parent company of U.S. Bank, the fifth-largest commercial bank in the United States. The Minneapolis-based bank blends its relationship teams, branches and ATM network with mobile and online tools that allow customers to bank how, when and where they prefer. U.S. Bank is committed to serving its millions of retail, business, wealth management, payment, commercial and corporate, and investment services customers across the country and around the world as a trusted financial partner, a commitment recognized by the Ethisphere Institute naming the bank a 2019 World’s Most Ethical Company. Visit U.S. Bank at www.usbank.com or follow on social media to stay up to date with company news. Quasar Distributors LLC, member FINRA, SIPC. Quasar Distributors, LLC is a wholly owned subsidiary of U.S. Bancorp.
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Nov 05,
2019
Pathstone Selects Lovell Minnick Partners as Strategic Partner
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11.05.19
Pathstone Selects Lovell Minnick Partners as Strategic Partner
LMP embraces existing vision and leadership, new investment supports innovation and growth for premier multi-generational firm to continue serving multi-generational clients ENGLEWOOD CLIFFS, N.J.- November 5, 2019 - Pathstone (“the Company”), a leading Registered Investment Advisory (RIA) firm with over $15 billion in assets under advisement as of the end of September 2019, today announced an investment by Lovell Minnick Partners (“LMP”). LMP, a private equity firm focused on investments in the global financial services industry and related technology and business services companies, will make a significant investment in Pathstone and provide ongoing strategic guidance to support the Company’s continued growth. Financial terms of the private transaction were not disclosed. Under the terms of the transaction, Pathstone will remain independent and it will continue to be managed by its existing leadership team. In addition, Pathstone will add 16 existing employees as new shareholders, bringing total employee ownership to 48 of the Company’s 110 employees. With LMP’s investment, Pathstone’s current financial partner, Fiduciary Network, will fully exit its investment. Matt Fleissig, President of Pathstone, states, “We set out to build a truly modern family office powered by next generation technology and a culture of innovation or, as we like to say, an organization that is ‘smart in a way that matters.’ With our partnership with LMP, we continue our focus on investing financial and intellectual capital in further developing client solutions.” “We are excited to partner with Pathstone in their next stage of growth. As experienced investors in the wealth management industry, we greatly admire the business they have built and we embrace their multi-generational promise,” said Jim Minnick, Co-Chairman of LMP. “Pathstone has created a full service offering with a unique technology-enabled approach that we believe helps drive superior client service and operational efficiencies through automation.” Brad Armstrong, Partner of LMP, added, “One of our reasons for investing in Pathstone is our shared commitment to incorporating Environmental, Social, and Governance (ESG) considerations in our investment criteria. We each believe it is additive to performance and beneficial in aligning our investment portfolios with our clients’ values. Inclusive of its legacy firms, Pathstone has been actively investing in sustainable and socially responsible investing strategies for nearly two decades and today has one of the most attractive ESG and impact investing platforms we have seen in the wealth management industry.” Allan Zachariah, Pathstone’s Co-CEO shared, “We are grateful for our current financial partners at Fiduciary Network and Emigrant Partners, who had faith in us and believed in our vision five years ago. They helped guide us through two material acquisitions that propelled the growth of our firm. We wish them well and appreciate their support in helping us reach this exciting milestone.” “This is a proud and exciting day for all of us here at Pathstone,” said Steve Braverman Co-CEO of Pathstone. “At Pathstone, we make a multi-generational promise to our clients, and that commitment is centered on providing a trusted and valued partnership. This is the next chapter of the Pathstone story that will continue to honor the trust and responsibility we have been granted by our clients. Our new partnership with LMP is built on that unifying vision, and we couldn’t be more thrilled for the path ahead.” The transaction is expected to close at the end of the Fourth Quarter of this year. Raymond James | Silver Lane served as financial advisor and Alston & Bird LLP served as legal counsel to Pathstone on the transaction. Davis Graham & Stubbs LLP served as legal counsel to LMP on the transaction. Madison Capital Funding LLC provided funding for the transaction. About Pathstone Founded in 2010, Pathstone provides integrated and customized family office, wealth and investment services to multi-generational families, single family offices, high net worth individuals and institutions, such as charities and foundations, via a technology-enabled open architecture investment platform. Pathstone is privately held and has over 100 employees serving approximately 300 clients with $15 billion of assets under advisement through seven locations nationwide. For more information, please visit www.pathstone.com.
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Oct 15,
2019
Foreside Acquires Compliance Advisory Services to Expand Compliance and Regulatory Services Offerings
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10.15.19
Foreside Acquires Compliance Advisory Services to Expand Compliance and Regulatory Services Offerings
Introduces a series of comprehensive financial service offerings for current CAS clients PORTLAND, Maine – October 14, 2019 – Foreside Financial Group, LLC (“Foreside”), a provider of regulatory and compliance service offerings to clients in the global asset management industry, today announced its acquisition of Compliance Advisory Services (“CAS”), a leading regional financial institution consulting firm. The acquisition expands Foreside’s footprint in the U.S. and captures additional market share. The firm already enjoys a national presence, headquartered in Maine with offices in New York, Boston, Berwyn and Columbus, Londonderry, Concord, and Delray Beach. “At Foreside, we’re committed to putting our clients first. This opportunity to partner with CAS allows us to work together to expand our comprehensive regulatory and compliance suite of service offerings as well as maintain a structured business model and point of contact for all CAS clients,” said David Whitaker, President of Foreside. “This acquisition is a fundamental step in a series of roll-ups that will keep us at the forefront of the regulatory consulting landscape. It gives us the opportunity to expand our wide-range of partnership offerings to a diverse range of clients. We are eager to work beside fellow expert compliance professionals to provide world-class service for clients while reaching our growth goals.” The acquisition will introduce Foreside’s various compliance consulting solutions, including proprietary compliance technology to all current CAS clients. Further, the partnership will consist of a combination of Foreside’s financial services solutions, personalized service models, and an all-inclusive partnership program. “We are deeply excited to be working alongside the Foreside team and feel Foreside is well-positioned to continue providing in-depth compliance service offerings to our clients,” said LaVerne White at CAS. “Not only will this partnership allow our clients' needs to be met in a more holistic capacity, but it will also offer an expansive level of support from a leading compliance firm. We feel confident Foreside will maintain the same level of professional expertise and precision we at CAS have strived to provide to our clients for over 25 years.” A nationally recognized regulatory compliance consulting firm with a focus on Investment Advisors, CAS works to provide their clients with extensive regulatory and compliance offerings designed to fit their needs. In partnership with CAS, Foreside will continue to offer these comprehensive service packages, will maintain the dedicated consultant model that characterizes CAS’s hands-on consulting approach, and will introduce its proprietary compliance technology to further streamline their clients' management of regulatory obligations. About Foreside Foreside delivers best-in-class technology solutions and comprehensive advice to clients in the global asset management industry. We distribute more than $1 trillion of product through our 20 limited purpose broker-dealers. For 15 years, our suite of services and platform-based model have helped us automate and simplify compliance and marketing for clients. We work with pooled investment products, investment advisors, broker-dealers, global asset managers and other financial institutions. By harnessing state-of-the-art technology, we help firms address and shape today’s regulatory environment, drive operational efficiency and growth, and focus on value-adding work. Foreside is headquartered in Portland, Maine with numerous regional offices, including those in New York and Boston. For more information on Foreside’s suite of services, please visit www.foreside.com. About Compliance Advisory Services Compliance Advisory Services, LLC. (CAS) is a nationally-known regulatory compliance consulting firm. CAS has long provided authoritative and practical advice in compliance matters and other important issues facing financial institutions. CAS' clients range in size from small community institutions to multibillion-dollar regionals. The firm’s consulting staff possess two common traits: excellent knowledge of regulatory requirements and finely-tuned comprehension of the financial industry.
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Oct 14,
2019
Lovell Minnick Partners Announces Acquisition of Billhighway
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10.14.19
Lovell Minnick Partners Announces Acquisition of Billhighway
New Investment to Accelerate the Company’s Growth in Existing and New Markets PHILADELPHIA, LOS ANGELES and NEW YORK – OCTOBER 14, 2019 – Lovell Minnick Partners, a private equity firm focused on investments in the global financial services industry, including related technology and business services companies, today announced that it has completed the acquisition of Billhighway (the “Company”), a provider of integrated software and payments solutions to membership-based organizations (“MBOs”). Financial terms of the private transaction were not disclosed. Headquartered in Troy, Mich., Billhighway provides SaaS-based accounting and transaction processing services to MBOs such as fraternities, sororities, unions and associations. MBOs use the Company’s technology suite for accounting, reconciliation and reporting while leveraging a full suite of electronic bill payment and presentment solutions. Billhighway improves the members’ experience while automating back-office functions and enhancing cash flow for national headquarters and local chapters. Founded in 1999, the Company is a leader in serving MBOs, which have more than 750,000 members nationwide. “We are excited to partner with the Billhighway team to support the Company’s growth in its core MBO markets and expansion into new segments,” said Trevor Rich, Partner at Lovell Minnick. “We believe that Billhighway solves critical pain points for its clients through scalable, differentiated technology and superior client service, and we are excited to accelerate further investments in the product, the market and the team.” Billhighway has continued to enhance its technology capabilities by developing integrations with leading member management, fundraising, and event management platforms. The Company has been highly focused on bringing together the best technology solutions and services to better serve its clients. The Company recently rolled out an in-person payments solution, an integrated housing management solution, and expanded services for MBO’s foundations and fundraising activities. “Lovell Minnick brings invaluable experience in the financial technology and payments sectors, and we’re pleased that we have found the right partner to help us further grow our business,” said Tom Bomberski, President at Billhighway. “They are highly committed to our current clients and their investment and operational acumen will help us to continue building out our technology platform, to enable member-based organizations to transform their operations, and to capitalize on attractive market opportunities.” “Billhighway’s platform provides MBOs with industry-leading financial and payments tools that streamline back-office tasks so MBOs can focus on their broader objectives, such as member experience and growth,” said Greg Cohen, an Operating Partner to Lovell Minnick and former president of the Electronic Transactions Association. “In partnership with Lovell Minnick, Billhighway will pursue organic and acquisitive growth opportunities to expand its footprint and position the Company for continued success.” As part of the transaction, Trevor Rich and Greg Cohen will be joining Billhighway’s Board of Managers. Morgan, Lewis & Bockius and Jaffe Raitt Heuer & Weiss provided legal counsel to Lovell Minnick. TPG Sixth Street Partners and Wells Fargo Bank, N.A. provided financing for the transaction. About Billhighway Got Chapters? Billhighway gives chapter-based organizations the tools to automate and simplify operations while creating data visibility across entire organizations. This empowers them and their chapters to focus more on member value and organizational growth. For over the past 20 years, Billhighway has provided “best in industry” technology to help chapter-based organizations simplify and take control of chapter finances. Our partner-centric approach offers clients flexible solutions to address challenges and achieve results that help them thrive and grow. Billhighway focuses on streamlining accounting, increasing cash flow and reducing expenses so they can focus on what’s important, their members. www.billhighway.co/
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Oct 11,
2019
Foreside named Best Compliance Advisory Firm at the 2019 Fund Intelligence Operations and Services Awards
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10.11.19
Foreside named Best Compliance Advisory Firm at the 2019 Fund Intelligence Operations and Services Awards
Foreside named Best Compliance Advisory Firm at the 2019 Fund Intelligence Operations and Services Awards Foreside Financial Group, a leading provider of compliance and distribution solutions, is pleased to announce they have been named “Best Compliance Advisory Firm” at the 2019 Fund Intelligence Operations and Services Awards. The award was announced on October 10th at a ceremony in New York City. The Fund Intelligence Operations and Services Awards recognize outstanding contributions made by business, operations, and technology leaders at asset management and service provider firms over the past year. “We are honored that Fund Intelligence recognized Foreside as the Best Compliance Advisory Firm,” said Mark Alcaide, Senior Managing Director at Foreside. “At Foreside we see regulation not as an obstacle, but as a catalyst for innovation. Our firm pairs best-in-class technology with comprehensive and customized consulting advice to help firms in the investment management space continue to innovate, improve, and grow.” Foreside marries innovative technology with high-touch consulting and expertise to help mitigate risk and increase operational efficiencies for firms across the asset management industry. ForesideConnectTM is one of the many technology tools Foreside has in place to align parties on compliance and timeline initiatives. Foreside’s technology solutions alleviate pain-points for clients, allowing them time to focus on their own value-adding work such as portfolio management, client service, and sales. www.foreside.com
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Sep 23,
2019
Tortoise Completes Acquisition of Advisory Research’s Midstream Energy Business
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09.23.19
Tortoise Completes Acquisition of Advisory Research’s Midstream Energy Business
LEAWOOD, Kan. – Sept. 20, 2019 – Tortoise today announced it has completed its previously announced acquisition of the midstream energy asset management business of Advisory Research Inc. from Piper Jaffray Companies (NYSE: PJC). The transaction brings together two highly experienced and tenured midstream energy pioneers with strong track records and complementary investment philosophies anchored in fundamental research. The midstream energy infrastructure team, including the leadership team of Senior Portfolio Managers Jim Cunnane, Jr. and Quinn Kiley, will maintain oversight of their current midstream energy infrastructure business and client relationships. The team brings approximately $3 billion in assets under management in balanced and equity strategies through mutual funds, separate accounts and sub-advised closed-end funds. “We are pleased to welcome Jim, Quinn and the entire team to Tortoise,” said Tortoise Chief Executive Officer, Kevin Birzer. “This partnership underscores our shared view that the midstream sector will play an essential role in the energy transition story as the U.S. exports low-cost energy to the rest of the world.” “We are excited to become part of the Tortoise family,” said Tortoise Senior Portfolio Manager, Jim Cunnane. “We share a passion for the midstream energy sector and see tremendous opportunities to leverage our collective industry wisdom. Most importantly, we have been actively collaborating to ensure a smooth transition for our clients.” Financial terms of the transaction were not disclosed. About Tortoise Tortoise invests in essential assets – those assets and services that are indispensable to the economy and society. With a steady wins approach and a long-term perspective, Tortoise strives to make a positive impact on clients and communities. For additional information, please visit tortoiseadvisors.com.
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Sep 20,
2019
Lovell Minnick Partners Announces Intention to Launch Voluntary Public Takeover of Charles Taylor plc
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09.20.19
Lovell Minnick Partners Announces Intention to Launch Voluntary Public Takeover of Charles Taylor plc
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION. Jewel BidCo Limited (“LMP Bidco”), a company formed on behalf of funds advised by Lovell Minnick Partners LLC and its affiliates (“Lovell Minnick”), is pleased to announce a recommended cash offer for Charles Taylor plc (“Charles Taylor”) (“Rule 2.7 Announcement”). This announcement should be read in conjunction with, and is subject to, the full text of the Rule 2.7 Announcement, which includes additional information about the terms and conditions of the Offer. This announcement and the Rule 2.7 Announcement will be available (subject to certain restrictions relating to persons resident in restricted jurisdictions) on Charles Taylor’s website at http://www.ctplc.com/investors and on LMP Bidco’s website at http://www.lmpartners.com by no later than 12.00 p.m. on the Business Day following the Rule 2.7 Announcement. The content of the websites is not incorporated into, and does not form part of, this announcement. Certain terms used in this announcement are defined in the Rule 2.7 Announcement. Under the terms of the Offer, each Charles Taylor Shareholder at the Scheme Record Time will be entitled to receive: For each Charles Taylor Share held 315 pence in cash
In addition, under the terms of the Offer, Charles Taylor Shareholders will be entitled to receive the previously declared Interim 2019 Dividend of 3.65 pence per Charles Taylor Share to be paid on 8 November 2019 to Charles Taylor Shareholders on the Charles Taylor register of members on 11 October 2019 without any consequential reduction in the Offer Price, subject to the terms set out in paragraph 18 of the Rule 2.7 Announcement. The Offer Price represents:
- a premium of approximately 34.0 per cent. to the Closing Price per Charles Taylor Share of 235 pence on 18 September 2019 (being the last Business Day prior to the date of the Rule 2.7 Announcement);
- a premium of approximately 39.5 per cent. to the three-month volume weighted average price of 226 pence per Charles Taylor Share to 18 September 2019 (being the last Business Day prior to the date of the Rule 2.7 Announcement);
- a premium of approximately 40.9 per cent. to the six-month volume weighted average price of 224 pence per Charles Taylor Share to 18 September 2019 (being the last Business Day prior to the date of the Rule 2.7 Announcement); and
- a value of approximately £261 million for the entire issued and to be issued share capital of Charles Taylor on a fully diluted basis.
In order to become effective, the Scheme must be approved by a majority in number of the Charles Taylor Shareholders voting at the Court Meeting, either in person or by proxy, representing at least 75 per cent. in value of the Charles Taylor Shares voted. In addition, at the General Meeting to implement the Scheme a special resolution to approve the adoption of the Amended Charles Taylor Articles must be passed by Charles Taylor Shareholders representing at least 75 per cent. of the votes cast on that resolution. Charles Taylor is a leading international provider of professional services and technology solutions to numerous clients across the global insurance market. It operates 24 hours a day across the globe to support every stage of the insurance lifecycle and every aspect of the insurance operating model. With approximately 3,100 employees spanning 30 countries, Charles Taylor brings together the skills and expertise of people across the organisation to deliver the best possible outcomes to its clients. Lovell Minnick has significant experience of investments in similar businesses to Charles Taylor, and is confident in the overall prospects of Charles Taylor's businesses and the sectors in which it operates. Lovell Minnick considers the Charles Taylor team to have built a high quality business and intends to support Charles Taylor by leveraging its expertise and experience of investing in global financial services companies, including related technology and business service companies. Additionally, LMP Bidco has affirmed the importance of the management and employees of Charles Taylor to its future strategy and confirmed that following completion of the Proposed Acquisition LMP Bidco plans to safeguard the existing contractual and statutory employment rights of all Charles Taylor’s management in accordance with applicable law. LMP Bidco has also confirmed that it intends to continue to service Charles Taylor’s existing customers to a high standard. Commenting on the Offer, Spencer Hoffman and Jason Barg, partners of Lovell Minnick, said: “We are delighted to invest in Charles Taylor and to support David and the management team in continuing the development of the business they have built over the past years. Charles Taylor is a high-quality business, operating in a sector Lovell Minnick has a strong track record of investing in and we believe that partnering with Lovell Minnick to pursue a shared vision to grow the platform will provide benefit to clients, employees and partners.” Commenting on the Offer, David Marock, Group CEO of Charles Taylor, said: “I am proud of what Charles Taylor has achieved over many years for its clients, partners, employees and shareholders. These achievements have been founded on its people, innovation and commitment to excellent client service. I am confident that this acquisition by Lovell Minnick, a highly regarded investor with experience in our markets, will provide Charles Taylor with the opportunity to continue to deliver on its existing growth strategy. They understand the foundations and strengths of our group and we welcome their commitment to working with the management team to drive the business forward.” The Offer will be put to Charles Taylor Shareholders at the Court Meeting and at the General Meeting. In order to become effective, the Scheme must be approved by a majority in number of the Charles Taylor Shareholders voting (and entitled to vote) at the Court Meeting, either in person or by proxy, representing at least 75 per cent. in value of the Charles Taylor Shares voted. In addition, at the General Meeting to implement the Scheme a special resolution to approve the adoption of the Amended Charles Taylor Articles must be passed by Charles Taylor Shareholders representing at least 75 per cent. of the votes validly cast on that resolution. The General Meeting will be held immediately after the Court Meeting. RBC Capital Markets acted as financial adviser to Lovell Minnick and Rothschild & Co acted as financial adviser to Charles Taylor. Debevoise & Plimpton LLP acted as legal adviser to Lovell Minnick and Davis Polk & Wardwell London LLP acted as lead legal advisors to Charles Taylor. The Offer is conditional on certain antitrust and regulatory clearances including the approval of the FCA and, if relevant, the PRA and Lloyd’s in the UK, and regulatory approvals in the Isle of Man, Bermuda and the State of Texas, United States of America. This announcement, the Rule 2.7 Announcement and the documents required to be published pursuant to Rule 26.1 of the Code will be available free of charge, subject to certain restrictions relating to persons resident in Restricted Jurisdictions, on Charles Taylor’s website at http://www.ctplc.com/investors and on LMP Bidco’s website at http://www.lmpartners.com by no later than 12.00 p.m. on the Business Day following the Rule 2.7 Announcement. About Lovell Minnick Lovell Minnick is a private equity firm focused on investments in the global financial services industry, including related technology and business services companies. Since its inception in 1999, Lovell Minnick has raised $3.3 billion of committed capital from leading institutional investors including public and private pensions, insurance companies, endowments and foundations, including $1.28 billion of capital committed to the Lovell Minnick Fund V. Lovell Minnick has 40 team members, of whom 21 are investment professionals, operating from offices in Philadelphia, Los Angeles and New York. Lovell Minnick provides buyout and growth capital, leveraging its deep domain expertise and network of relationships to support dynamic companies in capitalising on attractive market opportunities. Lovell Minnick focuses on developing strong working relationships with management teams and being value-added partners to help build long-term value for clients, employees and shareholders. Lovell Minnick Partners is a growth investor with significant experience in the insurance services and related technology space. To date, Lovell Minnick has completed more than 50 portfolio company investments. Relevant examples of current and former Lovell Minnick Partners investments include: J.S. Held, Worldwide Facilities, Duff & Phelps, ATTOM and Trea Asset Management. None of Lovell Minnick Partners’ current portfolio companies compete directly or indirectly with Charles Taylor. Important notice This announcement and the Rule 2.7 Announcement is for information purposes only and is not intended to and does not constitute, or form part of, an offer to sell or an invitation to purchase any securities or the solicitation of an offer to buy, otherwise acquire, subscribe for, sell or otherwise dispose of any securities, pursuant to the Offer or otherwise, nor shall there be any purchase, sale, issuance or exchange of securities or such solicitation in any jurisdiction in which such offer, solicitation, sale, issuance or exchange would be unlawful prior to the registration or qualification under the laws of such jurisdiction. The Offer will be made solely by means of the Scheme Document or any document by which the Offer is made which will contain the full terms and Conditions of the Offer, including details of how to vote in respect of the Proposed Acquisition. This announcement and the Rule 2.7 Announcement have been prepared for the purpose of complying with English law and the Code and the information disclosed may not be the same as that which would have been disclosed if this announcement and the Rule 2.7 Announcement had been prepared in accordance with the laws of jurisdictions outside the United Kingdom. RBC Capital Markets is the trading name for RBC Europe Limited, which is authorised by the PRA and regulated by the FCA and the PRA and is a subsidiary of Royal Bank of Canada. RBC Capital Markets is acting exclusively for Lovell Minnick and LMP Bidco and for no one else in connection with the Offer and will not be responsible to anyone other than Lovell Minnick and LMP Bidco for providing the protections afforded to its clients nor for providing advice in relation to the Offer or any other matters referred to in this Announcement. Overseas Shareholders The release, publication or distribution of this Announcement in certain jurisdictions may be restricted by law. Persons who are not resident in the United Kingdom or who are subject to the laws of other jurisdictions should inform themselves of, and observe, any applicable requirements. Any failure to comply with the applicable restrictions may constitute a violation of the securities laws of any such jurisdiction. To the fullest extent permitted by applicable law, the companies and persons involved in the Offer disclaim any responsibility or liability for the violation of such restrictions by any person. The Offer relates to shares of a UK company and is proposed to be effected by means of a scheme of arrangement under the laws of England and Wales. Neither the US proxy solicitation rules nor the tender offer rules under the US Exchange Act apply to the Offer. Accordingly, the Offer is subject to the disclosure requirements, rules and practices applicable in the United Kingdom to schemes of arrangement, which differ from the requirements of US proxy solicitation or tender offer rules. However, if LMP Bidco were to elect to implement the Offer by means of a Takeover Offer, such Takeover Offer would be made in compliance with all applicable laws and regulations, including Section 14(e) of the US Exchange Act and Regulation 14E thereunder. Such a takeover would be made in the United States by LMP Bidco and no one else. In addition to any such Takeover Offer, LMP Bidco, certain affiliated companies and the nominees or brokers (acting as agents) may make certain purchases of, or arrangements to purchase, shares in Charles Taylor outside such Takeover Offer during the period in which such Takeover Offer would remain open for acceptance. If such purchases or arrangements to purchase were to be made, they would be made outside the United States and would comply with applicable law, including the US Exchange Act. None of the securities referred to in this Announcement have been approved or disapproved by the US Securities and Exchange Commission, any state securities commission in the United States or any other US regulatory authority, nor have such authorities passed upon or determined the adequacy or accuracy of the information contained in this document. Any representation to the contrary is a criminal offence in the United States.
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Sep 17,
2019
Lovell Minnick Exits Mercer in its Recapitalization
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09.17.19
Lovell Minnick Exits Mercer in its Recapitalization
DENVER, Sept. 17, 2019 /PRNewswire/ -- Mercer Advisors, a national Registered Investment Adviser (RIA) with Assets Under Management (AUM) exceeding $16.5 billion, announced today a recapitalization whereby Oak Hill Capital will acquire an equity stake in the company from current private equity owners Genstar Capital ("Genstar") and Lovell Minnick Partners. Mercer Advisors is one of the largest independent wealth managers in the U.S., serving clients with a focus on the mass affluent and high net-worth markets. Based in Denver, Mercer Advisors has a national footprint with 44 offices and over 370 employees. The Company has nearly 35 years of wealth management experience and differentiates itself as a total wealth manager serving investors as a fiduciary and providing a broad range of services including financial planning, investments, estate planning and tax planning and preparation services. Under Genstar's and Lovell Minnick's ownership since Genstar's original investment in 2015, Mercer Advisors' AUM has grown dramatically, driven by addition of new client assets and acquisitions of other advisory firms from less than $5.8 billion in AUM to over $16.5 billion in AUM. In that span, Mercer Advisors invested heavily in enhancing its services for clients including the expansion of its investment offerings, significantly adding talent and expertise to its estate and tax planning teams, and extending its regional office footprint to over 40 regional offices. Mercer Advisors also enhanced its referral relationships with Charles Schwab, E*TRADE, Fidelity Investments, and TD Ameritrade. Over the past three-and-a-half years Mercer Advisors has completed 23 acquisitions that expanded its footprint, talent and expertise. In addition, in 2018, Mercer Advisors opened a new, full-service "Central Hub" headquarters in Denver to house multiple teams and functions to better support the dozens of Mercer Advisors' regional offices. Dave Welling, Chief Executive Officer of Mercer Advisors, said, "Mercer Advisors' vision centers on our unconditional commitment to our clients and working collaboratively with them to create the best context possible for their Economic Freedom™. With the support of our private equity partners we have been able to make significant investments in building a comprehensive set of services for our clients and in expanding that vision to new parts of the country." Added Welling, "Genstar Capital and Lovell Minnick were instrumental in our development and we are delighted that Genstar will be staying on as an investor and partner. Our future is even brighter with Oak Hill being added as a strategic investor. Key to our process in selecting Oak Hill as our partner was the unique combination of cultural alignment and their expertise in supporting management teams leading growth and change." Steve Puccinelli, Partner of Oak Hill, said, "Mercer Advisors is a unique integrated registered investment adviser with multiple levers to compound value and is well-positioned to further accelerate its already impressive growth. We are excited to partner with CEO Dave Welling, his outstanding team, and existing investor Genstar to further help the company expand organically and through strategic acquisitions." Tony Salewski, Managing Director of Genstar, said, "We are extremely gratified by the success of Mercer Advisors, having worked with management to create a strategic wealth management platform that delivers a truly integrated and robust client experience. Through a dynamic blend of organic and inorganic growth, the business has rapidly achieved scale and established itself as a market-leading RIA with immense future potential. We are excited to continue as investors and look forward to further building Mercer Advisors in our new partnership with Oak Hill." "We have enjoyed our collaboration with the Mercer Advisors management team for over a decade. They have performed at a very high level and achieved premier status in wealth management. We wish the team continued success as the Company writes its next chapter," said Jeffrey Lovell, Co-Chairman of Lovell Minnick Partners. Goldman Sachs & Co. served as lead financial advisor, Moelis & Company LLC assisted as financial advisors, and Willkie Farr & Gallagher LLP served as legal counsel to Mercer Advisors on the transaction. UBS served as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to Oak Hill Capital on the transaction. About Mercer Advisors Established in 1985, Mercer Global Advisors Inc. ("Mercer Advisors") is a total wealth management firm that provides comprehensive, fee-based investment management, financial planning, family office services, retirement benefits and distribution planning, estate and tax planning, asset protection expertise, and corporate trustee and trust administration services. Mercer Advisors is the parent company of Mercer Global Advisors, one of the largest Registered Investment Advisors and financial planning firms in the U.S. with over $16.5 billion in client assets. Headquartered in Denver, Mercer Advisors is privately held, has over 370 employees, and operates nationally through 44 offices across the country. For more information, please visit: www.merceradvisors.com. About Oak Hill Capital Oak Hill Capital is a private equity firm managing funds with approximately $15 billion of initial capital commitments and co-investments since inception. Over the past 33 years, Oak Hill Capital and its predecessors have invested in over 90 private equity transactions across broad segments of the U.S. and global economies. Oak Hill Capital applies an industry-focused, theme-based approach to investing in the following sectors: Consumer, Retail & Distribution; Industrials; Media & Communications; and Services. Oak Hill works actively in partnership with management to implement strategic and operational initiatives to create franchise value. For more information, please visit: www.oakhill.com. About Genstar Capital Genstar Capital is a leading private equity firm that has been actively investing in high quality companies for over 30 years. Based in San Francisco, Genstar works in partnership with its management teams and its network of strategic advisors to transform its portfolio companies into industry-leading businesses. Genstar currently has approximately $17 billion of assets under management and targets investments focused on targeted segments of the financial services, healthcare, industrial technology, and software industries. For more information on Genstar, please visit: www.gencap.com. About Lovell Minnick Partners Lovell Minnick Partners is a private equity firm focused on investments in the global financial services industry, including related technology and business services companies. The firm partners with outstanding management teams to help grow their companies and build value for investors through a combination of driving growth initiatives, strategic activity and operational improvements. Since its inception in 1999, Lovell Minnick Partners has become a leader in their chosen space, raising $3.3 billion of committed capital from leading institutional investors including public and private pensions, insurance companies, endowments and foundations. To date, the firm has completed more than 50 portfolio company investments.
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Sep 12,
2019
Real Estate Innovator and Visionary, Steve Ozonian, Joins Board of Directors at Inside Real Estate
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09.12.19
Real Estate Innovator and Visionary, Steve Ozonian, Joins Board of Directors at Inside Real Estate
DRAPER, Utah, Sept. 12, 2019 /PRNewswire-PRWeb/ -- Inside Real Estate, one of the fastest growing independently-owned real estate software companies and a trusted technology partner to over 200,000 top brokerages, agents & teams announced this week the appointment of Steve Ozonian to its Board of Directors. Known as a visionary leader in the real-estate tech space, Ozonian brings over 3 decades of experience serving in executive roles at Coldwell Banker Real Estate, Prudential Real Estate & Relocation, and REALTOR.com. "We're thrilled to welcome Steve to our board," said Ned Stringham, CEO of Inside Real Estate. "Steve brings a wealth of knowledge and relationships having successfully led companies through many facets of the real estate industry. His experience and perspective will be invaluable as Inside Real Estate expands its reach, partnering with the most prominent brokerage and franchise brands in real estate today." Named a Top Innovator and influential leader by The National Association of Realtors and other prominent media outlets, Ozonian has a long history of driving innovation at the intersection of real estate and tech. After serving as a senior executive at Coldwell Banker Real Estate and Chairman and CEO of Prudential Real Estate & Relocation, Ozonian went on to serve as the CEO of REALTOR.com, one of the leading real estate consumer portals in the United States. After his tenure at REALTOR.com, Ozonian also served as the CEO of RealEstate.com and is currently the lead independent director of Lending Tree and CEO of Williston Financial. "I believe Inside Real Estate is uniquely positioned to dominate the real estate software space," said Steve Ozonian. "They've gained substantial traction and scale in a highly fragmented industry thanks to a winning strategy, experienced team and a powerful software platform which drives real results for the agents, teams and brokers they serve. I'm honored to join their board and participate in their continued growth." Ozonian's appointment comes on the heels of substantial revenue growth for Inside Real Estate which has brought on hundreds of top brokerages to its flagship platform, kvCORE, so far this year and has doubled down on its long-term strategy with a new primary financial backer, Lovell Minnick Partners. About Inside Real Estate Inside Real Estate is one of the fastest growing independently-owned real estate software companies and a trusted technology partner to over 200,000 agents, teams and top brokerages. The company's flagship platform, kvCORE, is a modern and comprehensive solution known for delivering profitable growth at every level of a brokerage organization. Built with a scalable and flexible infrastructure, kvCORE enables brokerages to create their own unique technology ecosystem to enhance and differentiate their brand and culture. With an accomplished leadership team and over 175 employees, Inside Real Estate brings the resources, scale and vision to deliver ongoing innovation and success for its growing customer base. Learn more at insiderealestate.com.
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Sep 11,
2019
RIA Intel: Mega-RIAs Are on the Prowl. But a Bad Deal Can Quickly Backfire on an Advisor.
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09.11.19
RIA Intel: Mega-RIAs Are on the Prowl. But a Bad Deal Can Quickly Backfire on an Advisor.
Giant RIAs are aggressively targeting fast-growing, high net worth-focused firms. Before acting, advisors should pay heed to these key considerations.
By David Sterman
September 10, 2019
Throughout an advisor’s career, major milestones justify the celebratory popping of top-notch champagne.
Be it the first multi-millionaire client, the first year that managed assets surpass $100 million, or when a multi-advisor team crosses the billion-dollar threshold, a great sense of accomplishment is well deserved.
What to do next, though, is often the hardest part.
While many advisors are content to keep adding clients in a slow and steady organic manner, some want to jumpstart growth by joining forces with a larger firm to leverage growth and derive the benefits of scale. Of course, a decision to sell a practice may simply come down to prudent succession planning.
In the past, a common next step would have been to reach out to nearby planning and wealth management peers to see if they represented a good fit for existing clients.
Yet in the past few years, the decision to merge or sell, already an emotionally fraught question, has become far more complex as a new wave of mega-RIAs with ambitious expansion plans has created a whole new class of industry buyers.
Knowing more about these mega-RIAs, their growth strategies, and most importantly, how they can help serve existing clients, are key factors to understand before acting.
To be sure, many of the new massive RIAs under construction promise to solve a basic set of challenges. They can help a firm monetize (i.e. cash out) after years of building a wealth management practice. Or they can bring in fresh tools to help grow a base of clients, and managed assets.
Focus Financial Partners typifies the new breed of acquisition-driven firms. As part of its investor presentation, the firm lays out a fairly mundane set of reasons for selling your practice to Focus, citing virtues such as “an alignment of values,” an adherence to “fiduciary standards,” ample marketing resources, and “access to strategy.”
Beyond that kind of marketing pablum, Focus and its ilk also offer to take the managerial aspects of running a business off a company’s plate, usually for a hefty slice of cash flows. This kind of basic straightforward approach may be just fine for some advisors.
“You can’t convince someone to be an entrepreneur,” says Louis Diamond, executive vice president at industry recruiter Diamond Consultants. “Not everyone is well-suited to control various aspects such as marketing, technology, social media and office supervision.”
Yet for advisors (and their advisory teams) that instead want to pursue more robust and targeted growth, other massive RIA-focused aggregators offer more specific skill sets to help catalyze growth.
Take Lovell Minnick Partners as an example. The private equity-backed firm has been cobbling together a broad range of financial services firms, not just asset managers, in a bid to create an advanced toolset for advisors at its captive RIA firms.
“We’re fascinated by the recurring themes across financial services, which you cannot identify unless you have a broader lens,” says Brad Armstrong, a partner at the firm. “For example, we see the abundance of data and potential for AI and automation, an evolutionary change that’s playing out in areas beyond just wealth management – we’re also seeing it unfold in specialty finance, asset management, and other sectors within financial services.”
From compliance to fintech to analytics, Lovell Minnick helps provide acquired RIA firms with a very broad ecosystem of tools and a network of relevant contacts for business and corporate development that they may have lacked when they operated independently, says Armstrong.
“We’re heavily invested in our companies’ success and get excited about adding value,” says Armstrong, who adds, “we have over twenty companies pursuing growth strategies; while each has its own mission, we enjoy helping them deploy best practices we see elsewhere in the portfolio. In wealth management, an important toolkit today is the ability to drive an M&A strategy – our companies have made over 80 add-on acquisitions and average more than one a month, so we have the experience base and resources in-house to draw from.”
Along with a growing base of captive RIAs now under the Lovell Minnick umbrella, the firm also owns industry vendors such as Attom Data Solutions, which provides real estate industry analytics, SRS Acquiom, a provider of M&A settlement support, LSQ Funding Group, which offers working capital management tools, and One Zero Financial, which sells foreign exchange trade management software.
Emigrant Partners takes a different approach in support of RIA firms, eschewing traditional buyouts and focusing instead on providing access to growth capital (usually in the form of loans and cash flow participation), along with strategic advice.
Structuring the deals that way brings several key advantages.
“Firms maintain their independence and operating autonomy, and we stay out of their board rooms. These features are important to their founders, next gen and clients,” says Karl Heckenberg, Emigrant Partners’ CEO. Instead, his firm is focused on providing the kind of mentorship that can lead to higher AUM and profits.
As just one example, Emigrant established a partnership with Minneapolis-based NorthRock Partners this past April, and is already helping NorthRock devise strategies to drive rapid growth in high net worth relationships.
Heckenberg says that “North Rock is already on pace to double in size compared to when we first linked up.”
As is the case with Lovell Minnick, Emigrant Partners aims to bring in resources from other divisions to aid its RIA portfolio members’ growth strategies. Heckenberg cites services that can be offered from other subsidiairies at Emigrant Bank such as trust administration, property & casualty advisory, fine art finance, and other specialty lending and advisory capabilities.
Emigrant Partners is a part of New York Private Bank & Trust, which is an atypical industry backer of RIAs. Most of the industry’s growth capital is coming these days from private equity, other RIAs, and in rare cases, investment banks.
New York Private Bank & Trust also operates a separate RIA consolidator under the leadership of Heckenberg, known as Fiduciary Network. RIAs under that umbrella have asset management bases ranging from around $1 billion to $12 billion, with the average holding controlling $3 billion in AUM.
Emigrant Partners, Lovell Minnick Partners and other more selective industry operators share a key common trait: a desire to tap into the high net worth and corporate clients.
Advisors and their teams with such relationships will always be in high demand, says Carolyn Armitage of industry consultant Echelon Partners.
“I’ve seen advisors make an entire career off of one corporate client,” she says, adding that providing planning services to corporate executives, helping with areas such as stock options exercises, can be very lucrative for advisors.
A focus on high net worth clients isn’t the only key criterion for these selective RIA investors. Heckenberg says that his firm looks at 40 to 50 deals per year, and most of them aren’t growing organically.” His firm only looks to invest in firms that are already on the growth fast-track.
For firms like Emigrant, the talent bench at a potential acquisition is also a key consideration. Heckenberg says his firm is “heavily focused on internal succession. We spend as much time with the next gen leadership at the firm as we do with the founders.
Not all firms aim towards the premium client and rapid growth end of the market. Captrust Financial Advisors, for example, has a large defined contribution plan business, which helps advisors open the door for 401(k) relationships to sprout into full planning engagements.
Edelman Financial Engines is now the nation’s largest RIA, thanks to a similar approach that builds out from a core set of retirement plan management offerings.
These firms and other large RIAs are making heavy investments in digital planning technologies to help advisors streamline their processes and carve out more time to spend with clients (or look for new clients).
“Advisors tend to be laggards when it comes to technology,” says Tim Welsh, CEO of industry consultant Nexus Strategy. He adds that “many smaller practices simply lack the resources to spend a lot on technology.”
The good news: Welsh says that “there has been a renaissance in terms of advisor technology, in areas such as Customer Relationship Management (CRM), rebalancing software, tax planning efficiency software and others,” which is helping advisors to become much more efficient.
While Edelman Financial Engines has historically been focused on retirement plan management for the bulk of its asset growth, the firm now sees a growing set of tech tools as a key differentiator for clients as well.
“We want to scale our business on the retail side, using technology to help our advisors handle more clients,” says CEO Larry Raffone.
Indeed, the growing use of technology—by both advisors and clients alike—can be seen as an opportunity to stay on the industry’s vanguard. Millennial clients are especially well-adapted to a tech-driven financial planning approach.
The flip side of that trend is that any advisors with long-standing (and perhaps aging) clients may be ill-equipped to compete for next generation clients if they fail to evolve.
Raffone says his firm will continue to invest in firms that can bring more tech arrows into the quiver.
“We’re always on the lookout for vendors that can expand our digital offerings,” he says.
Even as Edelman Financial Engines has been at the forefront of the robo-advisory trend, he doesn’t consider it a major threat to the industry.
“Robo isn’t a business, it’s a capability,” he says. “For more complicated financial pictures, you still need to have a strong human connection. As far as he’s concerned, “digital services offer a path to create a better client experience, even for older advisors.”
The growing use of digital tools in planning and wealth management is also a defensive measure, as they can lower costs. Raffone cites the growing use of virtual planning as just one example.
“Planning fees are coming down and you can’t spend too much time on face-to-face meetings if you want to efficiently manage your time and your clients’ time,” he notes.
At the risk of oversimplifying the current landscape of large RIAs, we’re entering a bifurcated world in which high net worth-focused firms with ambitious growth plans sit squarely in the crosshairs of the industry’s most selective deal makers.
At the other end are firms that have a mass affluent client base and are looking to simply better mange their platforms and perhaps enable succession plans.
Picking the right investor is critical to a firm’s success. It also will ensure that the bubbly keeps flowing.
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