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Article: Roll-up firms get squeezed by backers and RIA firms; Lousy environment forces some founders who sold stakes in their firms to rethink plans.(News)
- Article from:
- Investment News
- Article date:
- October 12, 2009
CopyrightCOPYRIGHT 2009 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Jed Horowitz
Businesses that specialize in consolidating independent-advisory firms particularly, consolidators known as roll-ups are under strain, according to participants in the ventures, investment bankers and consultants.
The founders of some registered investment advisers who sold interests in their firms to monetize their life's work and promote a growth path for younger partners are repurchasing their stakes. Others are banking the cash they received in the initial deal by retiring early without the payout that they expected for sharing in the parent consolidator's growth.
Several consolidators that focused on practices with ...