Raymond James says its Canadian operations are buying the independent investment firm 3Macs, which should add 72 advisors with about $5 billion of assets to its business. Raymond James’ Canadian unit now includes over 1,000 people; it has 370-plus advisors (both independent and employee reps) and portfolio managers working in 117 locations.
Once the deal is complete, the firm says, it expects to have the largest independent investment dealer in Canada, with some $25 billion in client assets. “We are very excited about this new partnership with 3Macs and the opportunity to create a new legacy of excellence serving Canadians and Quebeckers with their total wealth management needs,” said Paul Allison, chairman & CEO of Raymond James Ltd., in a statement.
In the U.S., Canada and United Kingdom, Raymond James has roughly 6,700 financial advisors with $522 billion in client assets.
“Not only will this acquisition significantly accelerate our growth strategy across Canada and Quebec, it meets our highly selective parameters for cultural fit, growth in a strategically important marketplace, and ease of integration,” Allison said. “We are confident that our firm’s core values of putting clients first, conservatism, independence and integrity are mirrored and embraced by the people of 3Macs.”
3Macs is an abbreviated form of the group’s earlier name, MacDougall, MacDougall & MacTier Inc.; it was founded in 1849. “We respect the deep affinity the people of 3Macs and their clients have for its legacy, and we are proud to welcome our new colleagues under this historic name,” Allison said.
The latest acquisition news comes about six months after Raymond James said it was buying the U.S. private client business of Deutsche Bank, which is being renamed Alex. Brown — the firm’s original name.
This unit has close to 200 advisors with some $50 billion of client assets and $300 million of yearly revenue. (Alexander Brown started the firm, which is considered to be the first investment banking company in the United States, in 1800.) The Deutsche deal should be wrapped up in the fall, according to company executives.
“With our history of over 17 decades of serving the wealth management needs of multiple generations of clients and their families, choosing the right partner was our primary focus throughout this process,” said 3Macs President & CEO Randy Ambrosie, in a statement.
“Raymond James offers a culture of respect and client service; the opportunity to deliver world-class wealth management solutions; plus, enhanced technology solutions to further safeguard the privacy and security for our clients,” Ambrosie added. “Its long-term commitment and vision for growth in Canada and in Quebec is exciting and will greatly benefit our clients, advisors and employees alike.”
A month ago, Raymond James hosted its yearly U.S. independent advisor conference in Nashville. At the event, Raymond James CEO Paul Reilly said the Deutsche Bank deal will “accelerate some shifts we are making” in boutique-style wealth offerings.
“Now we can offer these ultra-high-net-worth services to our existing advisors and better serve their clients,” Reilly said in an interview after speaking to a crowd of about 1,700 independent advisors and 1,400 other guests. This means the firm will be giving more HNW clients options like multicurrency reporting, alternative investments, mortgage products and other concierge services, he added.
About 180 advisors with average yearly fees and commissions of $1.5 million are joining the firm. As for the fact that more than 90% of Deutsche’s 200 advisors are moving to Raymond James, “This is way above our expectations,” Reilly said.
Raymond James’ top 800 reps also produce yearly fees and commissions of $1.5 million and up. And the top 200 reps produce about $2.4 million or higher. The most recent average yearly production figure for Raymond James’ independent advisors in the U.S. is $560,000.
Meanwhile in Europe, Raymond James Financial says it has expanded its investment banking capabilities with the acquisition of Mummert & Co. Corporate Finance GmbH of Munich, Germany. Mummert & Co. is a middle-market M&A advisory firm which is focused primarily on the technology, industrial, health care, consumer and business services sectors. It has advised clients on over 140 completed transactions and has 20 professionals.
Including Mummert & Co., Raymond James has over 300 M&A advisory professionals working from more than 20 offices across the U.S., Canada and Europe.
“After extensive due diligence and time spent with their management team, it was clear that Mummert & Co.’s client-centric focus and very capable team represent an excellent fit both culturally and strategically,” said Reilly, in a statement. “We are confident that together we will continue to grow in Europe and build on Mummert & Co.’s impressive track record.” The newly added Mummert & Co. team will rebrand as Raymond James and operate as part of the existing Raymond James Corporate Finance division within Raymond James & Associates.
Melville D. Mummert, a managing partner of Mummert & Co., will serve as head of Raymond James’ European Advisory business.