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Waddell & Reed Tag

Waddell & Reed to Slash More Than 200 Jobs Following LPL Deal

17:39 09 March in In the News by rafferty

March 8, 2021 By Jeff Berman, ThinkAdvisor Waddell & Reed is slashing 219 jobs and will not be moving its corporate headquarters in Kansas following LPL Financial’s deal to buy its wealth management unit from Macquarie Group for $300 million, W&R and Macquarie said Monday. “We can confirm that 219 is the number of employees impacted at Waddell & Reed Financial,” a W&R spokesman said, following the company informing the Kansas Department of Commerce about the planned cuts on Feb. 26. The main details of that notice are listed on the Kansas Works website. The Kansas City Star was the first to report the planned W&R job cuts, on March 2. Industry Reactions Echoing Henschen, Tim Welsh, president, CEO and founder of consulting firm Nexus Strategy, told ThinkAdvisor: “There is always collateral damage when firms are acquired,...

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Why LPL’s Waddell & Reed Deal Is a Big Score for Both Sides

20:35 03 December in In the News by rafferty

December 3, 2020 By Janet Levaux, ThinkAdvisor The $300 million transaction is is “a quality acquisition” for LPL with “substantial benefits” for W&R advisors, Jon Henschen says. A day after LPL Financial said it was buying Waddell & Reed’s wealth management unit from Macquarie Group for $300 million, industry experts gave their quick evaluation of the deal’s value for both firms. W&R’s business has 921 independent advisors and $63 billion of assets. LPL has some 17,168 financial advisors. “It seems to be a real solid acquisition for LPL,” said Chip Roame, head of Tiburon Strategic Advisors. “There are very few opportunities left for LPL to pick up 921 independent financial advisors, [which] is about a year of recruits for LPL … or about a 5% addition in advisors.” Assuming LPL generates about 15 basis points on...

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Waddell & Reed sees ‘unprecedented change’ under new regime

20:33 05 December in In the News by rafferty

December 5, 2017 By Tobias Salinger, FinancialPlanning.com One of the oldest mutual fund companies in the country is transforming its independent broker-dealer with a new structure and a higher payout for advisors. At the same time, new leadership at the IBD remains intent on cutting costs and overall headcount. On the day before Thanksgiving, suburban Kansas City-based Waddell & Reed Financial disclosed a series of changes to its executive ranks. Thomas Butch, its chief marketing officer and the longtime head of the firm’s IBD and wholesale channels, stepped down after 18 years with the firm. Just a few days later, former Waddell & Reed CEO Henry Herrmann announced his retirement as chairman of the firm’s board. Current CEO Philip Sanders took over from Hermann last year as the firm struggled with outflows following portfolio...