Page 48 - Investment Advisor - Jan/Feb 2021

BROKER-DEALER BEAT

upbeat about it for several reasons. care, direct-to-consumer e-commerce, diversify revenues,” said Tim Welsh,
“The continuity that we’re provid- enthusiast brands, healthy living and head of the consultancy Nexus Strategy.
ing and the setting up of a Midwest active lifestyle companies, as well as “Retirement plan servicing is a key com-
service and operations center that will those in home furnishings. ponent in that marketplace, so this pro-
largely be staffed by Waddell & Reed “The integration of Financo’s more vides them with a new channel and
employees, as well as explicitly keeping than 25 experienced professionals with capability — a very strategic deal.”
connectivity to the Ivy Fund portfolio the Raymond James complementary Executive search consultant Mark
managers through Macquarie, and then consumer and retail practice positions Elzweig said, “Access to expanded retire-
having a [client transition] event that the firm as a global market-leader in ment service capabilities is a big plus
really is going to be largely free for advisors. Many advisors feel
of repapering for clients [via a “What we disclosed with that they have more of a sense of
negative consent process], it’s this transaction is that our control with an in-house depart-
compelling offering for advi- ment than with an external
sors,” he explained. financial model and our relationship. If NWPS has any
In other words, “When you
put that all together, we are financial expectations are built proprietary competencies that’s
of course helpful, too.”
bullish that we’ll do well,” the on 70% retention of assets. We Since assets in retirement
LPL executive added. “I can’t accounts tend to be “sticky,”
prognosticate, and there are would expect to be hopeful that Elzweig added, “this is a worth-
competitors out there that are we would outperform that.” while area” for Raymond James
engaged [with the W&D reps]. to invest and dedicate resources.
So we’re working hard. We have The addition of NWPS means
a very organized approach, and —Rick Steinmeier, LPL’s head of Raymond James can expand
we’re educating these advisors business development retirement services offerings,
and hope to earn their business.” such as retirement plan admin-
consumer and retail investment bank- istration, to its advisors and their cli-
UPDATES ON RAYMOND JAMES ing,” Raymond James said in a statement. ents, according to the firm, based in
In mid-December, Raymond James The deal is intended to help the firm St. Petersburg, Florida. “The timing is
struck a deal to acquire Financo, a bou- take advantage of the “significant shifts” opportune as the industry prepares for
tique investment bank that specializes taking place in the consumer and retail new solutions created by this year’s
in consumer- and retail-focused firms. industries, according to Jim Bunn, presi- SECURE Act, such as pooled retirement
That news closely followed its earli- dent of Raymond James Global Equities arrangements, and increases the invest-
er announcement that it was planning & Investment Banking. able market for employer and employee
to buy retirement plan administrator Raymond James Investment Banking small business solutions,” it explained.
NWPS, which has $35 billion in plan has raised nearly $280 billion in capi- NWPS employees are set to stay in
assets and 400,000 participants. tal for corporate clients and completed Seattle under the leadership of President
“With our strong capital position and about 750 M&As since 2015. The firm and CEO Tim Wulfekuhle. The business
the growing demand for effective invest- also works with 8,200 financial advisors will operate as part of the Raymond James
ment banking expertise among consum- and total client assets of $923 billion. Private Client Group and its Institutional
er and retail companies, this deal allows The firm’s earlier deal, buying Seattle- Fiduciary Solutions department.
us to strategically grow our capabilities based NWPS and Northwest Plan “Beyond being a good strategic fit with
with an industry-leading team that has Services, includes some 160 employees. our long-term growth strategy, one of the
a similar culture and desire to deliver Terms of the deal were not disclosed, key factors we weigh when considering
meaningful outcomes for clients,” said but Raymond James says it expects the whom to bring onto the Raymond James
Raymond James Financial Chairman transaction to close by year-end. team is culture, and NWPS’s values pro-
and CEO Paul Reilly. “As basis points get squeezed out of file is very similar to ours,” Chairman and
The Financo transaction is expected the investment management supply CEO Paul Reilly said in a statement.
to close in the firm’s fiscal second quar- chain, manufacturers and distributors
ter, which ends March 31. Financo’s — of which Raymond James is both Janet Levaux is editor-in-chief of Investment
specialties include beauty and personal — need to find new ways to grow and Advisor. She can be reached at [email protected].

46 INVESTMENT ADVISOR JANUARY/FEBRUARY 2021 | ThinkAdvisor.com