LPL Financial to Purchase Waddell & Reed’s Wealth Administration Organization and Enter Into Prolonged-Phrase Partnership With Macquarie

SAN DIEGO, Dec. 02, 2020 (World NEWSWIRE) — LPL Monetary Holdings Inc. (Nasdaq: LPLA) (“LPL Monetary” or “LPL”), a primary U.S. retail investment decision advisory agency, impartial broker-vendor, and registered expenditure advisor (RIA) custodian, now declared it has entered into an settlement with Macquarie Asset Management (“Macquarie”), the asset management division of Macquarie Team (ASX: MQG ADR: MQBKY), to purchase the wealth management business of Waddell & Reed Fiscal, Inc. (NYSE: WDR) (“Waddell & Reed”), on completion of Macquarie’s acquisition of all of the issued and exceptional typical shares of Waddell & Reed. Additionally, LPL and Macquarie have agreed to enter into a long-time period partnership, with Macquarie turning into a single of LPL’s major tier strategic asset administration associates.

By way of its subsidiaries, Waddell & Reed has provided financial investment administration and wealth administration companies to customers throughout the U.S. because 1937. These days, financial commitment merchandise are dispersed underneath the Ivy Investments (R) manufacturer, as nicely as by way of impartial economical advisors linked with Waddell & Reed, Inc. As of September 30, 2020, Waddell & Reed’s prosperity management organization had assets underneath administration of around $63 billion, up 10% yr-above-12 months.

Dan Arnold, President and Chief Government Officer of LPL Monetary mentioned: “Waddell & Reed advisors are really knowledgeable and effectively-respected in the course of the field. They are a terrific match each culturally and strategically, and we welcome them to the LPL family members. Searching in advance, we expect our abilities and sources will gain their tactics and assistance them unlock supplemental benefit and development. Moreover, we look forward to deepening our extended-expression partnership with Macquarie, which will aid us preserve exceptional features of the Waddell & Reed advisor knowledge whilst also positioning us to examine added long-expression possibilities collectively.”

Philip J. Sanders, Main Executive Officer of Waddell & Reed, mentioned: “Above the past handful of many years, we have been focused on leveraging our potent heritage as the foundation for reworking our organization into a much more diversified and growth-oriented fiscal providers enterprise. The lengthy-term partnership concerning LPL and Macquarie as component of this transaction accelerates that transformation and in the end will benefit our clientele and independent financial advisors although providing important worth to our stockholders.”

Martin Stanley, Head of Macquarie Asset Management, stated: “The addition of Waddell & Reed Economic and our increased partnership with LPL will noticeably improve our ability to mature and spend in our put together business enterprise for the advantage of our customers. Ivy Investments’ complementary financial commitment capabilities will present diversification to Macquarie Asset Management’s abilities and client foundation. The thought made available demonstrates the quality of Waddell & Reed’s business and the long term benefits of our partnership with LPL.”

Shawn Lytle, President of Delaware Money by Macquarie and Head of Macquarie Team in the Americas, added: “This transaction is an crucial stage forward in our expansion approach for Delaware Money by Macquarie. The acquisition of Waddell & Reed’s asset administration organization and our partnership with LPL considerably strengthens our situation as a top 25⁽¹⁾ US actively managed, extended-expression, open-finished mutual fund supervisor throughout equities, fastened revenue and multi asset remedies.”

The transaction has been authorized by the Boards of Directors of LPL Money, Macquarie Team, and Waddell & Reed and is predicted to shut in the center of 2021, subject matter to regulatory approvals, Waddell & Reed stockholder approval, and other customary closing problems.

LPL Money posted an trader presentation with an overview of the transaction on its Trader Relations page at investor.lpl.com.

Centerview Associates LLC served as unique money advisor and Ropes & Grey LLP served as special lawful advisor to LPL in link with the transaction.

About LPL Economic
LPL Financial (https://www.lpl.com) is a chief in the retail money tips market place, the nation’s largest independent broker/supplier⁽⁺⁾ and a primary custodian (or company of custodial services) to RIAs. We provide impartial economical advisors and monetary institutions, offering them with the technological innovation, investigate, clearing and compliance products and services, and apply management courses they will need to generate and increase thriving practices. LPL enables them to supply objective direction to hundreds of thousands of American family members trying to find prosperity management, retirement planning, economical arranging and asset management solutions.

⁽⁺⁾Based mostly on complete revenues, Economic Setting up magazine June 1996-2020.

Securities and Advisory Companies presented by LPL Economic LLC, a Registered Expense Advisor. Member FINRA/SIPC. We routinely disclose information that may possibly be vital to shareholders in the “Investor Relations” or “Push Releases” segment of our web page.

About Waddell & Reed Economic
Through its subsidiaries, Waddell & Reed Fiscal, Inc. has provided financial commitment management and prosperity management companies to clientele throughout the United States given that 1937. Nowadays, Waddell & Reed Money distributes its expense merchandise as a result of the unaffiliated channel under the Ivy Investments(R) brand (encompassing broker/seller, retirement, and registered expenditure advisors), its wealth administration channel (through independent economical advisors linked with Waddell & Reed, Inc.), and its institutional channel (including defined reward plans, pension strategies, endowments and subadvisory associations). For additional data, pay a visit to ir.waddell.com.

About Macquarie Asset Administration
Macquarie Asset Administration (MAM) is Macquarie’s asset management business enterprise. MAM is a total-company asset manager, providing financial investment solutions to customers throughout a variety of abilities together with infrastructure & renewables, real estate, agriculture, transportation finance, private credit, equities, fastened revenue, and multi-asset remedies. As of September 30, 2020, MAM had $A554.9 billion of property beneath management. MAM has about 1,900 staff members functioning across 20 markets in Australia, the Americas, Europe and Asia. MAM has been taking care of property for institutional and retail investors considering the fact that 1980 in Australia and 1929 in the US, as a result of a predecessor firm, formerly acknowledged as Delaware Investments.

Forward-Searching Statements
Statements in this press release with regards to LPL Economical Holdings Inc. (with each other with its subsidiaries, such as LPL Monetary LLC, the “Company” or “LPL Economical”) and its probable progress, organization method and options, including the predicted rewards of Macquarie Group’s acquisition of Waddell & Reed Economical, Inc. (jointly with its subsidiaries, “Waddell & Reed”) and LPL Financial’s acquisition of Waddell & Reed’s prosperity management business and partnership with Macquarie Team, as well as any other statements that are not relevant to existing points or current situations or that are not purely historical, represent forward-searching statements. These ahead-hunting statements are primarily based on the historic effectiveness of the Business and Waddell & Reed and the Company’s plans, estimates and expectations as of December 2, 2020. Ahead-hunting statements are not ensures that the foreseeable future final results, programs, intentions or expectations expressed or implied by the Corporation will be attained. Matters matter to forward-hunting statements include identified and mysterious challenges and uncertainties, which includes economic, legislative, regulatory, aggressive and other factors, which may perhaps trigger ranges of assets serviced, actual fiscal or functioning effects, levels of exercise or the timing of situations to be materially distinctive than people expressed or implied by forward-hunting statements. In individual, the Business can give no assurance that the assets described as serviced by fiscal advisors affiliated with Waddell & Reed (“Waddell & Reed Advisors”) will translate into property serviced by LPL Financial, that Waddell & Reed Advisors will sign up for LPL Monetary, or that the gains that are anticipated to accrue to LPL Fiscal, Waddell & Reed, Macquarie Team and their respective advisors and stockholders as a end result of the transactions described herein will materialize. Important variables that could cause or lead to these types of differences consist of: failure of the parties to fulfill the closing ailments applicable to the acquisitions explained herein in a timely fashion or at all, which includes the completion of the acquisition of Waddell & Reed by Macquarie Group, obtaining the expected stockholder and regulatory approvals, and the retention by Waddell & Reed of bare minimum belongings prior to closing disruptions to the parties’ firms as a final result of the announcement and pendency of the transactions, troubles and delays in recruiting Waddell & Reed Advisors or onboarding the clientele or companies of Waddell & Reed Advisors the lack of ability by the Company to sustain profits and earnings expansion or to entirely comprehend income or cost synergies or the other expected advantages of the transactions, which rely in aspect on the Company’s achievement in onboarding belongings at this time served by Waddell & Reed Advisors disruptions of the Firm’s or Waddell & Reed’s business enterprise thanks to transaction-linked uncertainty or other components creating it much more tough to keep interactions with its economic advisors and their shoppers, workforce, other company companions or governmental entities the inability to apply onboarding options and other consequences associated with acquisitions the choice by customers of Waddell & Reed Advisors not to open brokerage and/or advisory accounts at LPL Economical or transfer their property from Waddell & Reed to LPL Monetary unforeseen liabilities arising from the acquisition of Waddell & Reed’s wealth administration subsidiaries variations in general financial and economical sector conditions, including retail trader sentiment fluctuations in the worth of assets below custody results of competition in the money products and services marketplace, which include competitors’ achievement in recruiting Waddell & Reed Advisors and the other things set forth in Portion I, “Product 1A. Possibility Elements” in the Company’s 2019 Annual Report on Kind 10-K and any subsequent SEC submitting. Apart from as necessary by legislation, the Corporation specifically disclaims any obligation to update any ahead-looking statements as a consequence of developments transpiring just after the date of this press launch, even if its estimates modify, and you should not rely on individuals statements as symbolizing the Firm’s sights as of any day subsequent to the date of December 2, 2020.

Investor Relations:
Chris Koegel
617-897-4574
[email protected]

Media Relations:
Jeffrey Mochal
704-733-3589
[email protected]

COMTEX_375425660/2471/2020-12-02T17:01:42

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