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UBS Group (UBS) Seeks Wealth Management Growth in the US
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UBS Group AG (UBS - Free Report) intends to expand its wealth management business in the United States over the next three or four years on the back of mergers and acquisitions (M&A). The news was reported by Reuters that cited an interview of UBS chairman, Colm Kelleher, with the NZZ newspaper.
This strategic approach reflects UBS Group’s commitment to expanding its footprint in the U.S. market and further strengthening its presence in the wealth management space.
Over the past years, UBS Group has significantly strengthened its geographic footprint and expanded operations on the back of strategic partnerships and buyouts, underlining its inorganic growth strategy.
In June 2023, UBS Group successfully completed the acquisition of Credit Suisse (a regulatory-assisted deal). This strategic transaction is expected to bolster capabilities in wealth and asset management as well as aid in growing its capital-light businesses. The company is on track to complete the integration process by the end of 2026.
UBS’ previous efforts to grow inorganically also include its wealth management joint venture (JV) with Japan’s Sumitomo Mitsui Trust Holdings (UBS SuMi TRUST Wealth Management Co.), which was launched in August 2021. It established another investment banking JV with Banco do Brasil SA on Oct 1, 2020.
The company’s Global Wealth Management segment is its highest revenue-generating source. As of Dec 31, 2023, it had $3.8 trillion in invested assets and held the first position in Asia, Latin America, EMEA and Switzerland in terms of invested assets. Looking forward, the company has set an ambitious target to exceed $5 trillion in invested assets by 2028, indicating a strategic commitment to substantial growth and expansion in the upcoming years. We believe expansion into the U.S. market through strategic M&A will allow UBS to strengthen its position and ultimately become a market leader in the region.
Over the past six months, UBS shares have gained 22.5% on the NYSE compared with the industry’s growth of 10.2%.
Last week, Vinci Partners Investments Ltd. (VINP - Free Report) inked a deal to buy Compass Group LLC to redefine the investment landscape in Latin America. The transaction is set to close in the third quarter of 2024, pending regulatory approvals.
With this acquisition, VINP will solidify its position as a key player in the Latin American investment landscape, boasting more than $50 billion in assets under management across private markets, investment products and solutions, public equities and corporate advisory segments.
Last month, LPL Financial Holdings (LPLA - Free Report) announced its plan to acquire Atria Wealth Solutions, Inc. This move underscores the company’s commitment to expanding its reach and enhancing its offerings in the wealth management solutions market.
The acquisition aligns with LPLA’s goal to empower independent financial advisors and institutions nationwide by providing them with comprehensive support and resources. The agreement involves acquiring Atria Wealth Solutions’ broker-dealers, which include subsidiaries catering to both independent financial professionals and banks/credit unions.
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UBS Group (UBS) Seeks Wealth Management Growth in the US
UBS Group AG (UBS - Free Report) intends to expand its wealth management business in the United States over the next three or four years on the back of mergers and acquisitions (M&A). The news was reported by Reuters that cited an interview of UBS chairman, Colm Kelleher, with the NZZ newspaper.
This strategic approach reflects UBS Group’s commitment to expanding its footprint in the U.S. market and further strengthening its presence in the wealth management space.
Over the past years, UBS Group has significantly strengthened its geographic footprint and expanded operations on the back of strategic partnerships and buyouts, underlining its inorganic growth strategy.
In June 2023, UBS Group successfully completed the acquisition of Credit Suisse (a regulatory-assisted deal). This strategic transaction is expected to bolster capabilities in wealth and asset management as well as aid in growing its capital-light businesses. The company is on track to complete the integration process by the end of 2026.
UBS’ previous efforts to grow inorganically also include its wealth management joint venture (JV) with Japan’s Sumitomo Mitsui Trust Holdings (UBS SuMi TRUST Wealth Management Co.), which was launched in August 2021. It established another investment banking JV with Banco do Brasil SA on Oct 1, 2020.
The company’s Global Wealth Management segment is its highest revenue-generating source. As of Dec 31, 2023, it had $3.8 trillion in invested assets and held the first position in Asia, Latin America, EMEA and Switzerland in terms of invested assets. Looking forward, the company has set an ambitious target to exceed $5 trillion in invested assets by 2028, indicating a strategic commitment to substantial growth and expansion in the upcoming years. We believe expansion into the U.S. market through strategic M&A will allow UBS to strengthen its position and ultimately become a market leader in the region.
Over the past six months, UBS shares have gained 22.5% on the NYSE compared with the industry’s growth of 10.2%.
Image Source: Zacks Investment Research
Currently, UBS Group carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Expansion Efforts by Other Companies
Last week, Vinci Partners Investments Ltd. (VINP - Free Report) inked a deal to buy Compass Group LLC to redefine the investment landscape in Latin America. The transaction is set to close in the third quarter of 2024, pending regulatory approvals.
With this acquisition, VINP will solidify its position as a key player in the Latin American investment landscape, boasting more than $50 billion in assets under management across private markets, investment products and solutions, public equities and corporate advisory segments.
Last month, LPL Financial Holdings (LPLA - Free Report) announced its plan to acquire Atria Wealth Solutions, Inc. This move underscores the company’s commitment to expanding its reach and enhancing its offerings in the wealth management solutions market.
The acquisition aligns with LPLA’s goal to empower independent financial advisors and institutions nationwide by providing them with comprehensive support and resources. The agreement involves acquiring Atria Wealth Solutions’ broker-dealers, which include subsidiaries catering to both independent financial professionals and banks/credit unions.