M&A
Morgan Stanley
The banking giant has agreed to acquire E*Trade Financial Corporation, a financial services company and online broker firm, in an all-stock transaction valued at approximately $13bn.
Under the terms of the agreement, E*Trade stockholders will receive 1.0432 Morgan Stanley shares for each E*trade share, which represents a per share consideration of $58.74, based on the closing price of Morgan Stanley common stock on 19 February 2020.
The combination will “significantly increase the scale of Morgan Stanley’s Wealth Management business”, the firm said in a statement.
E*Trade has over five million accounts collectively holding over $360bn of retail client assets, adding to Morgan Stanley’s existing three million client relationships and $2.7trn of assets.
The acquisition is subject to regulatory approval and is expected to close in the fourth quarter of 2020.
Franklin Templeton
The investment giant will acquire asset manager Legg Mason in a deal worth around for $4.5bn (£3.48bn, €4.17bn).
The US fund group said it had agreed to buy Legg Mason and its affiliate asset management companies for $50 a share in an all-cash deal.
The company will also assume approximately $2bn of Legg Mason’s outstanding debt, while securing $1.5trn in assets under management.
Following the closing of the deal, Jenny Johnson will continue to serve as president and chief executive, and Greg Johnson will continue to serve as executive chairman of the board of Franklin Templeton.
There will be no changes to the senior management teams of Legg Mason’s investment affiliates.
Global headquarters will remain in San Mateo, California and the combined firm will operate as Franklin Templeton.
The deal is subject to regulatory approval and is expected to close no later than the third quarter of 2020.
IQ-EQ
The private client service provider has acquired Blue River Partners, a US provider of outsourced solutions to alternative asset managers.
Founded in 2009, Blue River services more than 400 clients across the US and employs approximately 180 people across its seven office locations – Dallas (HQ), Fort Worth, Houston, Austin, New York, Chicago and San Francisco.
IQ-EQ’s US operation will total 200 people as a result of this transaction.
Blue River’s founding partners Mark Fordyce, chief executive, and Michael Minces, president, will assume the leadership of IQ-EQ’s US operations.
The financial terms of the deal were not disclosed.
Wealth Enhancement Group
The independent wealth management firm has acquired Joyn Advisors, a registered investment adviser based in Atlanta, Georgia.
This is Wealth Enhancement Group’s first venture into the Atlanta area.
Joyn has 35 employees, including 12 financial advisers.
David Geller, chief executive and co-founder of Joyn, set up the practice in 1991 with his brother Matthew, who is president of Joyn.
The financial terms of the deal, which is expected to close by 1 April 2020, were not disclosed.
Robertson Stephens Wealth Management
The firm has acquired Vine Street Wealth Management, a California-based registered investment adviser.
It manages approximately $150m in assets.
Vine Street co-founders John Bernabei and Zack Perry will join Robertson Stephens as managing directors and continue to service their existing clients.
The financial terms of the deal were not disclosed.
People Moves
UBS Private Wealth Management
The wealth firm has hired investment managers Denis Cleary and Gregory Devine, along with analysts Abigail Harris, Seamus O’Neill, Mindi Chen and Christopher Carbone.
Cleary and Devine both operate teams with $6bn of assets under supervision.
With clients located in more than 25 states, Cleary and Devine will serve the local communities in Boston and Los Angeles.
Both were previously at Goldman Sachs.
First Republic Bank
The private bank and wealth management firm has named Nichole Heidrick, Linda Mauzy and Leigh Flor as managing directors and wealth managers.
Based in Bellevue, Washington; the team will provide investment management, retirement planning, investment consulting and other wealth management services to individuals, families, non-profits and private family foundations.
Heidrick was a managing director at Wells Fargo Private Bank, while Mauzy and Flor were senior vice presidents at Wells Fargo Private Bank.
Wedbush Securities
The financial services and investment banking firm has named Tony May as managing director of investments.
Before joining Wedbush, May served as a financial adviser at Stifel.
Raymond James & Associates
The adviser broker/dealer firm has hired John Malatino for its offices in Viera, Florida.
He comes to Raymond James from Wells Fargo Advisors, where he previously managed $180m in client assets.
Malatino is joined by senior registered client service associate Fiona Walker and marketing associate Jennifer Malatino.
They operate as Precision Wealth Management of Raymond James’ Space Coast team and will be located in the Viera.
RBC Wealth Management
The wealth manager has hired a team for its Baltimore branch.
The Gounaris Bachmann Group comprises:
- Daniel Gounaris, senior vice president and financial adviser;
- Daniel Bachmann, senior vice president and financial adviser;
- Denise Fiamingo, senior registered client associate; and,
- Melinda Wise, client associate.
The team oversees approximately $426m in client assets and comes to RBC Wealth Management from Merrill Lynch.
