Larry Roth posted his weekly “Larry’s Take” commentary on the deals and recruiting in the wealth industry on Wealth Solutions Report as part of its Deals & Recruiting Roundup.
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The inorganic growth trend isn’t just for aggregators. MCF Advisors announced its first acquisition since receiving capital backing from HGGC’s Aspire and Wealth Partners Capital Group in March. Post-deal, the firm has $3.9 billion in assets, small in comparison with the major players.
As I wrote in July, RIA M&A activity has the wind at its back. Although hundreds of RIAs are acquired each year, dozens of new RIAs are formed every month, replenishing the industry. Many of them will eventually seek a buyer.
MCF demonstrates that medium-sized firms can become buyers. If your firm needs to grow in a strategic direction, whether by niche, services or – as in the case of MCF – in a key geography, don’t automatically count your firm out as “too small.” It’s a path worth exploring.
If you would like to discuss this Larry’s Take further, including how these trends might impact your business, please contact Larry Roth at larry.roth@ascentix.com.
To see the Wealth Solutions Report Deals & Recruiting Roundup for the week, click here. Visit Wealth Solutions Report for the latest wealth management insights, analysis and news.