Articles published 7/2021
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Robinhood got its $32-billion IPO after it parlayed a Wall Street rebel image into a way for the Wall Street elite to cash in
The Menlo Park, Calif.-based phenom's founders become billionaires but Goldman Sachs and J.P. Morgan get their cut of the IPO, and the bulk of the trade spreads go to the Street's giant trading houses like Citadel and others
July 29, 2021 at 6:26 PM
Suddenly Vanguard, BlackRock, State Street not only have the assets but the power of ESG mandates, which make them a growing threat to shareholder democracy, critics say
A handful of super-charged fund managers control $34 trillion of assets and most of the ESG inflows, giving them 'carte blanche' to shape corporate policies.
July 28, 2021 at 10:35 PM
iCapital raises heart-stopping $440 million at $4-billion valuation, after signing big deals to become the alts engine of Envestnet and Allfunds
The 2013-founded, New York City-based alternatives investments company has positive cash flow, high growth and the growing support of more giants and RIAs
July 28, 2021 at 2:25 AM
Charles Schwab & Co. is following an 'omni-channel approach' to fully open 406 branches, while rival Fidelity is taking a more cautious approach to COVID
The Westlake, Texas company, ironically, brought in record Q2 assets with branch office doors locked, but the company is reopening all offices
July 27, 2021 at 2:11 AM
Empower climbs to $1.4 trillion on fifth acquisition--Prudential's record-keeping business-- but Fidelity hit the $1.4-trillion mark in 2014 and is pulling away on organic growth alone
Empower's $3.4 billion deal ups total assets to $1.4 trillion, a distant second to Fidelity's $3.2 trillion in administered assets.
July 24, 2021 at 3:09 AM
Hightower Advisors brings a high-end slice of RIA custody in-house by retrofitting a Texas bank and poaching a Schwabie
The Chicago RIA rollup reports regular wins of UHNW as it hits $100 billion of AUM and holding assets in trust can build on that ultrahigh niche, CEO says
July 22, 2021 at 8:27 AM
Vestwell raises another $70-million, which it needs as it burns cash to keep up with rapid tripling of its 401(k) recordkeeping startup -- driven both by RIAs and Wall Street
Wells Fargo's co-led the round of the New York City-based innovator, which hints it may follow Morgan Stanley, Voya Financial and BNY Mellon in being an investor that also becomes a customer
July 20, 2021 at 10:37 PM
Dan Seivert's ripping success in RIA M&A deals has odd side effect of having some sidearm staff leave for new vistas
Carolyn Armitage and Mark Bruno left to mutual benefit, while Echelon Partners roars on, feeding the beast of deal-crazed RIA buyers and sellers.
July 20, 2021 at 1:17 AM
The ironic outcome of Riskalyze's negative advertising attack on Orion's risk subsidiary is a boost in fortunes for both, though the flare-up may also have unhelpfully awoken a sleeping Morningstar
The Auburn, Calif., firm still holds an '85% market share,' says Aaron Klein, and he also doesn't regret shining a spotlight on what he disparages as 'unfruitful guesswork'.
July 17, 2021 at 3:05 AM
Tricia Rothschild is out at Apex in run-up to $4.7 billion IPO as an ex-Goldman exec assumes her day-to-day role and two ringers fill big jobs
The ex-Morningstar exec leaves president role after one year as ex-Google and ex-Nasdaq talents step into new CTO and CMO posts.
July 14, 2021 at 7:04 PM
After RIA pilot test soars, Vanguard Group buys Just Invest, to counter disruption bids by rivals in the direct indexing game
The Malvern, Pa., manager of $7.9 trillion lifted Just Invest to quick $1 billion of AUM -- much of it in accelerating 2021 -- then buys the Oakland, Calif., direct indexing startup
July 13, 2021 at 5:27 PM
SmartAsset raises $110 million after LPL and Schwab dominoes fall, revenues zoom to $100 million and Zoe escalates RIA referrals arms race
Suddenly valued at $1 billion, the New York City referral outsourcer raised painless cash, the better to recruit 150 more staffers after LPL referral deal and Schwab Advisor Services drop in-house lead recipients.
July 13, 2021 at 1:46 PM
Checking pre-IPO boxes, Robinhood makes quick work of FINRA with $70-million settlement but minefield of less sympathetic investigators and litigants lies ahead
The SRO huffed that its action sounds a loud warning to future scofflaws but Brian Hamburger asks what $70 million means to a firm set to sell shares at a $40 billion valuation
July 10, 2021 at 3:03 AM
Dimensional Fund Advisors rocks the mutual fund industry by undertaking mass conversion of its mutual funds to ETFs
The Austin, Tex., manager of $640 billion largely for RIAs went from diehard mutual fund holdout to top-11 ETF provider with the swipe of a pen, and analysts predict copycats will convert trillions of dollars of their own mutual fund assets.
July 9, 2021 at 1:04 AM
Genstar buys sprawling RIA and BD compliance complex from Lovell Minnick to widen roll-up efforts
The $33-billion private equity firm adds '$1-trillion' Foreside Financial as 'signature' holding and sees 'secular GRC tailwinds' in making compliance into a more widely outsourced service
July 7, 2021 at 7:24 PM
Ric Edelman removes a major impediment to his firm's future growth--himself--the last act in a 36-year career that will leave Edelman Financial Engines to fend for itself
It must 'demonstrate that it can operate and grow without me,' says Edelman, who pulled the trigger on his departure, following the company's recapitalization.
July 6, 2021 at 2:32 PM
Charles Schwab Corp. to pay up to $200 million in federal regulatory charges, following SEC robo-advice probe; may be tied to discrepancies between how it collected revenues internally and how advertising implied no advisory fee.
The $7.4 trillion in administered assets Westlake, Texas broker-dealer came late to the robo business, but quickly dominated. That move fast, break things blitz may now produce a hangover.
July 3, 2021 at 12:23 AM
As part of sale to J.P. Morgan, OpenInvest is orphaning RIA clients and laying off the startup's direct-indexing sales force
The New York City super bank ends OpenInvest's days as a money manger and makes it into a technology pod within the $4 trillion AUA company to infuse ESG across wealth, asset management and, perhaps, all the way down to credit cards.
July 2, 2021 at 3:19 AM
Enigmatic Sallie Krawcheck finds success evolving her RIA to a more conventional high-net-worth business model, then proclaims her 'contrarian' bonafides
The former chief of Merrill Lynch brokers uses analyst's choice of Bank of America shares as example of also-ran thinking but her maverick approach with Ellevest may be declining.
