Summit Financial’s Post

Why are private equity firms acquiring wealth managers? It’s a large and highly fragmented industry that is ripe for consolidation, explains Lauren Schy Seidman Managing Director at Stone Point Capital. Check out other great sound bites from BNY Pershing’s INSITE conference on our Bites website: https://lnkd.in/eVTRannZ #realinsite #bny #aerialview #aerialviewbites

If you’ve been following trends in the investment advisory business, you’re aware of the tremendous amount of consolidation that has happened. Firms rolled up and sold, and those firms rolled up and sold again. There appears to be some unraveling now occurring. Goldman Sachs has off-loaded one of their acquired roll-ups, reportedly to another large consolidator of RIA practices. While all of this may benefit the principals of the transacting firms, what of their clients? Were the needs of their clients even considered?    It brought to mind the 1940 book by Fred Schwed “Where Are the Customers’ Yachts?” We recommend it, if you’re not familiar with it. While the book is about New York City stockbrokers of that era, we might suggest it analogous to current times. At Redstone, we are wholly owned by our active principals. We strive to know our clients and their objectives, not just their account number. 

When it comes to investing in secondaries, can diversification ever be too much? For our upcoming private equity webinar, “Precision secondaries: how to reel in the big fish and avoid the unwanted by-catch”, on Thursday, 2nd May 2024 at 15:00 BST / 16:00 CEST, the team is joined by special guest Harriet Matthews, Funds Editor at Mergermarket to focus on in-depth analysis which demonstrates that diversification does not always deliver on its promise in secondaries. Together with Paul Newsome, Head of Investment Solutions, Ralph Büchel, CFA, Global Head of Secondaries, and David Ng, Senior Vice President in our Secondaries team (APAC), the group will also debate whether investors get better value from GP-leds or LP stakes, and why the mid-market is the best place to be in secondaries. Join us for a riveting conversation on the state of the secondaries market.  https://lnkd.in/e4JvyTGp #secondaries #privateequity #midmarket

We’ve seen an increase in deal quality but a decrease in deal volume. Explore the current state of the market for private equity and M&A transactions in this blog: https://okt.to/yx8KNp #privateequity #mergersandacquisitions

I'm honored to have been recognized by Forbes as a Best-in-State Wealth Advisor for 2024! This achievement would not be possible without the trust and support of our incredible clients and the Summation Wealth Group team along side me! What does it take to be recognized as a Forbes Best-in-State Wealth Advisor? According to Forbes, these ranking advisors were nominated by their firms for expertly helping their clients navigate uncertainties, particularly in an election year. You can read more about the methodology here. https://lnkd.in/gnwhASJ2 #forbes #nmprivateclientgroup #SummationWealthGroup

Looking forward to attending The WealthiHer Network event 'The Path to IPO' this evening at the London Stock Exchange where my colleague Erika McIntyre is amongst the speaker panel. I've supported a number of businesses with the equity incentives (i.e. share plan) and venture capital tax relief aspects of a listing (via the traditional paths of new float co or direct listing and also via reverse takeovers and SPAC merger business combinations) and it is never too soon to start planning. Unexpected NIC liabilities scuppered some flotations in the millenium dotcom bubble. Subsequently legislation changed to help solve for that (but you need to have the correct drafting in your share plan documents). In the 2021 rush of IPOs, SPACs became a thing and brought with them their own unique challenges. (Square peg to round hole in terms of most employee share plans that had not originally been drafted with that specific form of exit in mind and often lack of liquidity for sell to cover for example - risking dry tax charges for employees). Executives also need to understand the impact of the corporate event on their own existing equity interests and the governance changes that apply to publicly traded companies and how this will set a different landscape for the post listing share plan awards. Register to join at link below ⬇ https://lnkd.in/ePqeacHR #IPO #IPOReadiness #FemaleFounders #CorpGov #tax #Equity #Flotation #Listing #ExitPlanning #BusinessStrategy

We’ve seen an increase in deal quality but a decrease in deal volume. Explore the current state of the market for private equity and M&A transactions in this blog: https://okt.to/JjhaCd #privateequity #mergersandacquisitions

Mike Hinchliffe providing some interesting food for thought... The current fundraising environment appears to be favouring larger houses and funds when it comes to raising monies from LPs. Smaller houses, while often more dynamic and agile, are feeling the pressures of a saturated market and competition accessing the LP cheque book. Is it now inevitable that we will start to see greater consolidation within the mid-market PE market itself? The trend already seems to be gaining traction at the upper end of the market, most recently with US private equity power house General Atlantic's strategic merger with Actis a leading global investor in sustainable infrastructure. #readysteadygrow #privateequity #investmentfunds

For this weeks’ #ChartOfTheWeek, we switch gears for a moment and consider the BlackRock / GIP acquisition that was announced today. (Back to the story of RSNs next week!) This deal underlines several themes we’ve touched on in our recent writing. First, the mix of challenges and opportunities facing sponsors of all sizes is raising the importance of scale. Second, firms at the leading edge of scale today – in our framework, “Level 8 ” firms, roughly speaking – will face pressure to broaden the scope of their business to access the next tier of growth. Third, traditional asset managers and insurers face pressure to diversify into or enhance alternatives capabilities. This wedding of asset management and financial services writ large with private markets has, in our view, just begun. With GIP, BlackRock creates the number two sponsor behind Brookfield in infrastructure – a significant TAM, with strategic undertones for BlackRock, and a TAM where the power law of AUM market share has been even more skewed than Buyout. BlackRock has roughly $140 billion of illiquid alternative assets today, and this transaction grows illiquid alternative AUM by nearly 80%. Further, BlackRock has more than $900 billion in retail AUM ($40 billion in retail) and a large retail distribution operation. Plugging GIP into this distribution network will elevate GIP’s capital formation capabilities, particularly for “core”-like (stabilized), cash-flowing infrastructure products that are more suitable for retail clients. #privatemarkets #assetmanagement #alternativeinvestments

If a mid-market European PE firm was looking at its own market as an investment opportunity, what would it see? 2024 has gotten off to an interesting start...in particular when it comes to consolidation in the private capital space with the recent moves by BlackRock and General Atlantic. But stepping away from the very big players, what will we see happening in the European mid-market? Addleshaw Goddard's Head of PE Mike Hinchliffe is sharing his thoughts on a market segment that is arguably ripe for consolidation with opportunities for acquisitive GPs to grow and diversify their offering and future proof. Please reach out to any member of our Private Equity team or Private Funds Group if you'd like to discuss and share thoughts. #readysteadygrow #privateequity #funds