The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Could Your RIA Shop Be The Next Target For a Buyout? Not Rated 0.0 Email Routing List Email & Route  Print Print
Thursday, June 14, 2012

Could Your RIA Shop Be The Next Target For a Buyout?

News summary by MFWire's editors

If you own an RIA managing ETF portfolios for clients, don't be shocked if the next rap-tap on your door is from a private equity firm looking to buy you out. Reuters reporter Jessica Toonkel writes that one of the challenges for firms considering investing in ETF portfolio providers is determining if they have the resources to be successful.

A larger point that she does not touch on is that the trend underscores that ETFs are not just competing for mutual fund firm's customers, they are also competing for dollars from a limited pool of backers.

Those private equity firms seeking to make an ETF play through RIA shops include FTV Capital, Aquiline Capital Partners, Century Capital and Grail Partners, writes Toonkel.

Those firms are savvy enough to seek targets with distribution.

"You can have a great product but if you don't understand distribution you will have $100 million in assets and low profitability," Ben Cukier, a partner at private equity firm and investor in ETF providers FTV Capital, told Reuters.

Private equity firms, after all, are looking for growth. Distribution is the biggest growth factor acquiring these small RIAs can provide.

The movement to invest in these firms is surely not yet at its zenith, Toonkel reports. With most ETF providers having a limited performance record, many private equity firms are staying away from these moves until the market is more proven. 

Edited by: Ben Geier

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2024: Q3Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use