NU Online News Service, May 5, 2004, 6:01 p.m. EDT – Nationwide Financial Partners Corp., New York, is paying its managers more these days because their firms are doing better.[@@]
Management fees ate up 17.2% in revenue during the first quarter, up from 14.5% during the first quarter of 2003.
NFP, which has no ties to Nationwide Financial Services Inc., Columbus, Ohio, has been building a national financial services distribution by acquiring independent advisory firms from their owners, and NFP says the increase in management fees is a sign that the strategy is working.
The increase in revenue going to management fees “was driven by a broad improvement in the earnings performance of NFP’s owned firms relative to operating targets,” the company says.
NFP says it has set aside $800,000 for sellers of advisory firms that do well during the 3-year post-acquisition period.