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Fidelity Clearing Offers Discounted Loans for M&A Capital

By Garrett Keyes June 11, 2019

Fidelity Clearing & Custody Solutions, a division of Fidelity Investments, is offering discounted access to capital for its clients in need of it for M&A deals through a new relationship with Merchant Investment Management, the company says in a press release.

The arrangement with Merchant also offers the custody clients reduced rates to Advisor Assist, which provides compliance solutions, and Compass, which provides outsourced CFO and accounting services for advisory firms.

“Today’s most competitive and future-ready firms are achieving scale through mergers and acquisitions. But it takes capital to create scale,” David Canter, head of the RIA segment at Fidelity Clearing and Custody Solutions, says in the release.

And since the average deal size has been increasing threefold over the past five years, it can be difficult for firms to access needed capital, Canter adds.

M&A activity in the RIA space hit a record high in 2018, as reported. A total of 181 RIA M&A deals executed in 2018, up from 168 deals in 2017, according to consulting firm Echelon Partners.