Macquarie Group’s asset management division, Macquarie Asset Management, has announced it has acquired the US-listed asset and wealth manager, Waddell and Reed Financial, for a total consideration of approximately $2.3 billion.
Further to that, on completion of the transaction, Macquarie would sell Waddell and Reed’s wealth management to LPL Financial Holdings, a US investment advisory firm, and would enter into a long-term partnership under which Macquarie would become one of LPL’s strategic asset management partners, the firm said in the announcement made to the Australian Securities Exchange (ASX).
The transaction would be expected to increase Macquarie Asset Management’s assets under management (AUM) to over $650 billion and help the business become a top 25 actively managed open-ended US mutual fund manager by AUM.
Waddell and Reed Financial, which has two businesses: an asset management business (US$68 billion ($91.7 billion) in AUM) and a wealth management business (US$63 billion in AUM), has its products distributed under the IVY Investments brand as well as through independent financial advisers.
“The addition of Waddell and Reed and our enhanced partnership with LPL will significantly increase our ability to grow and invest in our combined business for the benefit of our clients,” head of Macquarie Asset Management, Martin Stanley, said.
“IVY Investments complementary investment capabilities will provide diversification to Macquarie Asset Management’s capabilities and client base. The consideration offered reflected the quality of Waddell & Reed’s business and the future benefits of our partnership with LPL.”
The transaction was approved by the boards of directors of Macquarie Group, LPL and Waddell & Reed and would be expected to close by mid-2021, subject to regulatory approvals, Waddell and Reed shareholders and other closing conditions.
