L Catterton has firmed up plans to acquire Financial Standard, an independent Japanese asset management adviser. The IFA market is expected to undergo consolidation as demand for asset management services among Japan's wealthy grows.
The Nikkei has learned that L Catterton, a US private equity firm based in Tokyo, plans to acquire Financial Standard, one of Japan's leading asset management advisers. The IFA industry is expected to undergo consolidation as demand for services aimed at wealthy clients grows.
Financial Standard, the acquisition target, is headquartered in Chiyoda-ku, Tokyo, and is regarded as one of Japan's largest IFA operators. IFAs are not affiliated with a specific financial institution and can make recommendations based on client needs. They provide a consulting-based approach to asset management.
In the market environment, rising costs for compliance, technology infrastructure and talent acquisition are squeezing the margins of smaller operators and driving consolidation. At the same time, demand among wealthy individuals for investment advice is growing, and L Catterton is seeking growth opportunities in the Japanese market.
The transaction terms have not been disclosed, and regulatory approval by Japan's financial authorities is expected to be required. The timing of a formal decision on the deal has not been determined.