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Macquarie buys US wealth manager

 — 1 minute read

The asset management division of Macquarie Group has secured one of the oldest asset and wealth firms in the US for $2.3 billion.

Macquarie Asset Management (MAM) has completed its acquisition of Waddell & Reed Financial, all set to retain the group’s asset management business.

Waddell & Reed’s US$76 billion ($98.1 billion) in assets under management will cause MAM’s AUM to swell to more than $650 billion.  

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The transaction has also seen Macquarie sell Waddell & Reed’s wealth management platform to American retail investment advisory, broker-dealer and investment custodian LPL Financial Holdings for US$300 million.

In addition to the sale, Macquarie and LPL have entered into a partnership, with the Australian group to become one of LPL’s strategic asset management partners. 

Macquarie signalled its intentions for Waddell & Reed in December, stating it would gain increased scale and diversification from the combined platform. 

Shawn Lytle, president of Macquarie’s Delaware Funds in the Americas region commented: “We are pleased to welcome the Ivy Funds shareholders to the Delaware Funds by Macquarie. 

“Both fund families have a shared focus on delivering strong investment returns and an excellent client experience for all. This combination, along with our enhanced partnership with LPL, unlocks substantial value for Waddell & Reed advisors and their clients.”

LPL financial president and chief executive Dan Arnold commented Waddell & Reed advisers have a “strong cultural and strategic fit” with his company. 

“We look forward to supporting them with our comprehensive platform that helps them design and operate the perfect practice for them and their clients,” Mr Arnold said. 

“Waddell & Reed and Macquarie have been strong partners throughout the process, and we look forward to our ongoing collaboration.”

 

Macquarie buys US wealth manager
Macquarie
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Sarah Simpkins

Sarah Simpkins

Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth. 

Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio. 

You can contact her on [email protected].

 

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