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AMG Wealth Acquires Clarfeld Stake - Analyst Blog

By: Zacks.com
Posted: 8/20/2013 1:25:00 PM
Referenced Stocks: AMG;BX;FIG;PFG

AMG Wealth Partners, LP, a subsidiary of Affiliated Managers Group Inc. ( AMG ), has announced the acquisition of an equity stake in N.Y.-based Clarfeld Financial Advisors, LLC. However Clarfeld's management and employees still hold a majority stake in the firm and will continue operating it autonomously.

As part of the deal, a large number of Clarfeld's senior executives have made long-term employment commitments to the firm. However, the terms and conditions of the deal were not disclosed.

Founded in 1981, N.Y.-based Clarfeld, provides complete investment, estate and financial planning. Further, the company offers tax planning and compliance, risk management and family office services to professionals, business owners and other high-net-worth individuals as well as family trusts and foundations.

Clarfeld's expertise in the wealth advisory sector, its healthy client base, a strong culture of risk management and a wide range of services will be added advantages to Affiliated Managers. Additionally, Clarfeld has ample opportunities to grow its business, given its renowned brand position. The collaboration will help Clarfeld enhance its advisory business, especially in the U.K.

We believe that Affiliated Managers remains well positioned to benefit from increased investments in the near term. Further, opportunistic acquisitions will add to the company's diverse product mix and will be a near-term growth driver for revenues.

Moreover, the increasing need for risk management and alternative investment solutions within the financial service industry is expected to be accretive to the company's financials going forward. However, a slow economic recovery will likely be a dampener.

Affiliated Managers currently carries a Zacks Rank #3 (Hold). Some better performing asset mangers include The Blackstone Group L.P. ( BX ), Fortress Investment Group LLC ( FIG ) and Principal Financial Group Inc. ( PFG ). All these stocks carry a Zacks Rank #2 (Buy).



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