David Canter, Head of the RIA segment, Fidelity Clearing & Custody Solutions

Boston-based Fidelity Investment’s division, Fidelity Clearing & Custody Solutions announced a partnership with Merchant Investment Management (Merchant). The partnership will enable wealth management firms looking to grow and advance their offerings increase access to a range of offerings and services, including access to Merchant’s lending solutions with a discounted origination fee for firms that custody assets with Fidelity.

“Today’s most competitive and future-ready firms are achieving scale through M&A. By our count, there are over 700 RIAs that manage over $1B, and they’re often doing so with national footprints. But it takes capital to create scale—and with the average deal size increasing three-fold in the past five years, access to that capital can sometimes be a roadblock,” says David Canter, head of the RIA segment at Fidelity Clearing & Custody Solutions. “Lending solutions like this one are a game-changer for firms looking to make strategic acquisitions to create long-term, sustainable value.”

A growing trend in today’s firms is growing via mergers and acquisitions (M&A) with the average deal increasing three-fold in the past five years. With this, lending solutions to empower such M&As game changer. As bigger and more capitalized firms are able to build businesses that have long-term, sustainable value, M&A continues to be a key component of growth for wealth management firms.

“We set out to create a credit offering that is focused on speed, collaboration, and flexibility. The industry is experiencing a massive amount of change, and it’s exciting to help the firms we work with institutionalize and grow,” said Marc Spilker, Executive Chairman of Merchant Investment Management. “Fidelity’s connectivity with leading independent wealth management firms gives us the opportunity to create meaningful growth opportunities for those organizations.”

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by Megha Bhattacharya
Market Analyst at IBS Intelligence
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