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The sale of Allworth Financial is heating up with a winning bidder expected soon, according to four banking and private-equity executives.

The auction has narrowed to three private equity firms; final bids were due last week, Oct. 6, two of the sources said.

Raymond James

(ticker: RJF) and

Moelis

(MC) are advising on the process, people said.

Allworth, which is owned by Parthenon Capital, is expected to sell for roughly $750 million to $800 million, one of the people said.

Allworth is an RIA aggregator that buys up smaller wealth managers. The Sacramento firm scooped up Capstone Capital in May, Houston Asset Management in April and, in October, it bought Retirement Advisors of America. Allworth, in May, had roughly $8 billion of assets under management, according to a statement.

Parthenon invested in Allworth in 2017 when the firm was known as Hanson McClain Advisors. Parthenon, of Boston and San Francisco, invests in financial services, health care services and business services. The private-equity firm is investing out its sixth flagship fund which raised $2 billion in December.

The Allworth sale is the latest in the wealth and asset management space. Last week,

Morgan Stanley (MS)

shocked many when it agreed to buy asset manager Eaton Vance (EV) for $7 billion. The sale is expected to set off more consolidation. “If

Eaton Vance

is selling— they’re considered one of the strong companies—then that tells you the mediocre and bad companies are selling,” one banker said.

Private-equity firms have been frequent investors of wealth managers. Hellman & Friedman owns Edelman Financial Engines, while TA Associates acquired Wealth Enhancement Group from Lightyear Capital in 2019. (TA and Genstar Capital own Orion Advisor Solutions.) GTCR bought a minority stake of CapTrust in June. Genstar and Lovell Minnick Partners sold a minority

By Matt Scuffham

NEW YORK (Reuters) – Goldman Sachs Group Inc management is considering whether to scale back financial targets set earlier this year, as the coronavirus pandemic has hindered the bank’s business model revamp, analysts and sources inside the bank told Reuters.

Goldman unveiled plans to boost returns on equity and cut costs during its first-ever investor day in January. To reach its goals, Goldman would squeeze more revenue from existing businesses like wealth management as well as relatively new ones like consumer lending, while launching additional corporate services like cash management.

Since then, the pandemic has slammed into the economy, crippling loan demand and causing widespread unemployment. It has also prevented Goldman bankers from drumming up business with new customers the way they could before coronavirus lockdowns.

Although Goldman’s trading revenue has soared thanks to market volatility, other initiatives have stalled.

“Unless there’s a silver bullet vaccine cure, it looks like Goldman will not hit its targets,” said Viola Risk Advisors bank analyst David Hendler. “It’s behind on wealth management and it’s behind on consumer.”

A spokesman for Goldman referred Reuters to executives’ prior statements but declined to comment further.

Goldman Sachs executives have stood by their targets, stressing that the path to achieving them in the coming years would not be “linear.” They are not expected to move the goalposts on Wednesday when the bank reports third-quarter results.

Instead, the bank may change targets in January, a year after they were set, said the sources, who were not authorized to speak publicly.

As it stands, Goldman pledged to produce a return on tangible common shareholders’ equity (ROTE) of more than 14% by 2023, compared with 10.6% in 2019.

The bank also outlined plans to cut expenses by $1.3 billion over that time frame, producing an efficiency ratio

This means that many car insurance customers can make tweaks to their policies without fee or risk of suffering any heavy losses.Experts at uSwitch have urged customers that it could be worth going to firms to waive these fees and make changes which could reduce costs.

They specifically highlight how road users can update their mileage details to reduce their perceived road risk and therefore lower charges.

They warn that if your car is due for renewal, it is worth recalculating mileage based on how much you have driven in 2020.

This is expected to be wildly different from the mileage predictions submitted at the start of last year before the lockdown was considered.

This is especially the case for road users who may have been forced to work from home for long periods and give up a long daily commute.

READ MORE: Car insurance customers can ‘cut the costs’ of a policy today

“So if you want to recalculate your mileage, it could be worth giving them a call to waiver the amendment fee.
“If you have a record of your mileage from the last time you applied for cover, you could use this to calculate the difference used this year.

“If you don’t, you can always sum up how far you’ve travelled each day on average to get a rough estimation.”

MoneySavingExpert Martin Lewis has previously urged road users to take advantage of the sudden cut in cancellation and amendment fees to their advantage.

He revealed it was a great time for customers to shop around and switch for a new agreement as drivers would not be liable for costs.

Switching mid-agreement would result in heavy cancellation costs but under current measures, drivers can swap completely free of charge.

He has urged drivers to switch policies regularly to

Ripple Executive Chairman Chris Larsen

Chris Larsen, Ripple co-founder and chairman of the payments technology company’s board of directors, said China’s “itching” to be the one that designs the next financial system and that the U.S. is “woefully behind.”

  • Speaking at the LA Blockchain Summit last week, Larsen said the U.S. needs to face up to that it’s in a tech cold war with China with the fate of control of the world’s financial system at stake. Right now, China’s winning, he said.
  • “China is just itching to be the one that designs this next system,” Larsen said. “They’ve committed $1.4 trillion to a variety of technologies and blockchain is right at the top of their list.” 
  • It’s not just that China’s pumping money into technology, the regulatory environment in the U.S. is actively discouraging financial innovation, he said.
  • “I just have to say it, in the U.S., all things blockchain, digital currency, they start and end with the SEC, Larsen said. “Instead of pivoting to encouraging U.S. innovation to keep up, they’ve done the opposite.”
  • “We’re going to have to change up here or we’re going to lose our leadership, stewardship of the global financial system,” he said. “That would be a tragedy.”
  • As CoinDesk reported at the time, Larsen also said his company could leave the U.S. if the regulatory environment doesn’t improve.

See also: SEC Will Be Forced to Give Crypto Guidance Despite Bureaucracy, Risk-Avoidance: Peirce

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Source Article

Ripple Executive Chairman Chris Larsen

Chris Larsen, Ripple co-founder and chairman of the payments technology company’s board of directors, said China’s “itching” to be the one that designs the next financial system and that the U.S. is “woefully behind.”

  • Speaking at the LA Blockchain Summit last week, Larsen said the U.S. needs to face up to that it’s in a tech cold war with China with the fate of control of the world’s financial system at stake. Right now, China’s winning, he said.
  • “China is just itching to be the one that designs this next system,” Larsen said. “They’ve committed $1.4 trillion to a variety of technologies and blockchain is right at the top of their list.” 
  • It’s not just that China’s pumping money into technology, the regulatory environment in the U.S. is actively discouraging financial innovation, he said.
  • “I just have to say it, in the U.S., all things blockchain, digital currency, they start and end with the SEC, Larsen said. “Instead of pivoting to encouraging U.S. innovation to keep up, they’ve done the opposite.”
  • “We’re going to have to change up here or we’re going to lose our leadership, stewardship of the global financial system,” he said. “That would be a tragedy.”
  • As CoinDesk reported at the time, Larsen also said his company could leave the U.S. if the regulatory environment doesn’t improve.

See also: SEC Will Be Forced to Give Crypto Guidance Despite Bureaucracy, Risk-Avoidance: Peirce

Related Stories

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Source Article