A $5.5 billion LA-based RIA is getting purchased by First Republic Bank
Luminous Capital has gone from a 2008 Merrill Lynch breakaway to a big bank puzzle piece in 2012
Biz Briefs: The sorry scene at my local First Republic branch • Schwab launches new (smaller) lay-off round • Schwab hoovers pennies passing FINRA fee to clients • Gensler pleas for funds • Fidelity owner's private equity pres. retires • an Orion-Envestnet staff switcheroo • LPL dumps FutureAdvisor
Range Rovers screeched in and drivers joined a grim queue to get their cash, and cookie • The Schwab-TDA deal cull count now stands at roughly 3.5% of its staff • FMR's hockey star president has stepped down • SEC chief wants more enforcers • An Envestnet executive proves joining a rival is good business • LPL now has an in-house robot.
April 29, 2023 at 1:36 AM
Apex nabs Jon Patullo from 'Schwabitrade' to 'raise the bar' and make his new firm's RIA system as 'frictionless' as the old one
The loved and admired TD Ameritrade software chief will bring his playbook -- and possibly Schwab's -- to Apex, which continues to try putting a winning front-end on its old Penson backend, a source says
October 11, 2022 at 12:40 AM
Infamous stockbroker resolves civil suit stemming from violent tirade -- the apparent final chapter in an incident that went viral and forever branded him the 'Fairfield Smoothie Guy'
Broker Jim Iannazzo went all out with high-powered attorneys and slick Las Vegas crisis pr team to limit the damage from his actions, but whether he can ever live down the incident remains to be seen.
September 1, 2022 at 5:11 AM
Robinhood gets 'brilliant' upper manager -- and a spare CEO -- by nabbing TD Ameritrade's ex-thinkorswim top exec, hopefully to throw a lifesaver to Robinhood's sinking stock
The Menlo Park, Calif., firm nabbed Steve Quirk as first-ever chief brokerage officer to 'bridge the gap between academia and reality.'
January 6, 2022 at 10:33 PM
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Top Executive: Tom Nally
DeVoe & Company
Top Executive: David DeVoe
This is a very clear example of how an RIA/wealth manager with large AUM and scale can attract the interest of a larger strategic buyer. Because the Luminous partners were wise enough to leave Merrill as a team with over $1.5 billion, they had the foundation to scale and grow fast, ultimately (and quickly) attracting a strategic buyer. There are very few RIAs with greater than $5 billion. This validates the break away model for larger teams and it validates the M&A market for larger RIAs. What it may also do is confuse some smaller break away brokers and RIAs that believe they can have this same success and as quickly. A small break away broker, who forms a sub $500 million RIA will most likely will not have the same success.
For smaller RIAs, this also speaks to the competition that is evolving in the marketplace from larger wire house teams breaking away and forming RIAs. Look for more large teams forming very formidable competitors over the next few years. Scale is going to be more and more important….it already is!
Frederick Van Den Abbeel / TradePMR
These types of acquisitions by a financial institution I believe are a growing trend. I’ve been following these types of purchases for years. I believe more banks and related financial institutions are now more than ever considering acquiring RIAs.
Will be interesting to see how the culture of an RIA firm which is typically very innovative and entrepreneurial will blend into a bank culture. Sometimes they clash, sometimes they compliment.