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Investments

162

Portfolio Exits

82

Funds

4

Partners & Customers

10

Service Providers

3

About Merrill

Merrill is a wealth management business. The strategies its financial advisors offer go beyond investment management to include college savings strategies, retirement planning. eldercare, philanthropy, estate planning services, small business services, and access to cash management & banking strategies.

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Latest Merrill News

Morgan Stanley adds loan and E-Trade incentives to 2022 pay grid

Dec 3, 2021

Another major wirehouse is keeping its compensation largely the same in 2022. In a similar approach to rival firm Merrill Lynch , Morgan Stanley will make no changes to its compensation grid next year, according to an internal memo this week from the firm’s head of field management, Vince Lumia. While Wells Fargo hasn’t released its 2022 grid, UBS streamlined its system and J.P. Morgan Advisors updated the firm’s model to look more like those of its competitors. The slight shifts at Morgan Stanley will play out respectively in January, June and July in lending, banking, incentives for net acquired assets and team pay. Morgan Stanley and other wirehouses are facing more rivals than ever for financial advisor talent, whether among regional employee brokerages, independent broker-dealers or the increasing number of RIA platforms and consolidators. In the firm’s last earnings call, CEO James Gorman cited some “ very big teams coming in ” as a sign of the firm’s recruiting momentum this year. However, the firm no longer discloses its exact headcount in its force of about 16,000 brokers, making it difficult to track its performance in the crucial fight for talent. The firm’s “upscale name” and competitive offers have helped it beat out the other wirehouses for advisors this year, according to recruiter Michael King, who notes that some brokers tend to be less disposed to Morgan Stanley because of a greater emphasis on deferred compensation. “They're encouraging more asset gathering, and lending is a big moneymaker for the firms,” King says of Morgan Stanley’s grid. “That's a very smart move, and I’m not surprised.” Timing of tweaks A shift this July that counts self-directed E-Trade accounts held by Morgan Stanley clients as part of an advisor’s net acquired assets also marks the first time that the pay model has integrated the do-it-yourself investing platform into broker compensation since last year’s $13-billion acquisition , King said. Clients must grant their advisors visibility over the self-directed accounts to qualify. In an additional switch effective in July, net new liability growth will be part of net acquired assets as well. “Consistent with our strategic objectives, the plan is designed to support you as you continue to grow your practices and deepen client relationships,” Lumia said in a statement. “The minimal updates made to the plan are aligned with our modern wealth strategy and are intended to best position you as your businesses evolve to meet your clients’ unique needs.” Morgan Stanley didn’t make any executives available for an interview about the pay grid. The wealth management news outlet AdvisorHub first reported the 2022 grid earlier this week. Other adjustments to payouts from lending activity will start in January. For starters, advisors may receive a lending growth award without having positive year-over-year gross revenue growth or net acquired assets for the year. With Morgan Stanley raking in at least $6 billion in new loans for five straight quarters and carrying north of $120 billion, the firm trimmed the payouts to 40 basis points from 50 and boosted the minimum lending balance increase to $1.5 million from $1 million. For mortgages, brokers will receive a standardized payout of 75 bps and start compensation for mortgages sold by other employees on their team at 35 bps. In July, as part of the shift to include net new liability growth in the count of new assets under a client’s total balance across their accounts, advisors will pick up three more percentage points on their credit rate for clients that add at least $5 million over a rolling 12-month period. That same month, Morgan Stanley is allowing teams that maintain the same balance or gain dollars in trailing 12-month net acquired assets and liabilities among at least 50% of their clients to receive compensation as a group. The firm will pay the incentive to teams that meet that provision or three others it introduced last year for the first time. Lastly, in a slight variation in June, brokers will get 15 bps instead of 10 for average monthly client money held in bank deposits, savings and cash sweep accounts, with a cap on eligible balances of $1 million. Recruiting outlook The largely unchanged pay grid for next year forms a contrast with the long-term transformation described by Gorman on Morgan Stanley’s earnings call in October. After acquisitions like E-Trade and a major retirement plan consulting firm in the third quarter, the firm can tap into several different means of expansion, according to the CEO. The firm “used to have a very monolithic model for asset gathering,” Gorman told analysts. “You had financial advisors who left and who you recruited, and for many years we were net deficit of financial advisors as were frankly most of the broker-dealers in my 30 years of doing this,” Gorman said. “A couple of years ago the net deficit changed materially for us. We are seeing net positive attrition, very few advisors leaving and significant advisors coming, in particularly large teams from across the street and the banking industry.” Regardless of any quarterly metrics, though, Morgan Stanley and other wirehouses are deploying methods of encouraging advisors to stay, whether to collect their deferred compensation or to keep all of their clients’ loans under the same roof, according to recruiter Danny Sarch of Leitner Sarch Consultants. If the firms can retain the brokers all the way up to their eventual retirements, they’re vying to ensure their clients’ children use the firm as well. “They're trying to hold on to what they have and keep a bigger piece of it. They're just playing the hand that they're dealt,” Sarch said. “Succession is the giant story in this industry.”

Merrill Investments

162 Investments

Merrill has made 162 investments. Their latest investment was in NavInfo as part of their PIPE on February 2, 2021.

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Merrill Investments Activity

investments chart

Date

Round

Company

Amount

New?

Co-Investors

Sources

2/23/2021

PIPE

NavInfo

$618.56M

Yes

2

7/23/2020

Series A - III

BRAVO

$4.28M

Yes

5

11/1/2017

Biz Plan Competition

InvestSure

$0.06M

Yes

2

5/23/2014

Loan

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$99M

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10

3/3/2014

Debt

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$99M

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10

Date

2/23/2021

7/23/2020

11/1/2017

5/23/2014

3/3/2014

Round

PIPE

Series A - III

Biz Plan Competition

Loan

Debt

Company

NavInfo

BRAVO

InvestSure

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Amount

$618.56M

$4.28M

$0.06M

$99M

$99M

New?

Yes

Yes

Yes

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Co-Investors

Sources

2

5

2

10

10

Merrill Portfolio Exits

82 Portfolio Exits

Merrill has 82 portfolio exits. Their latest portfolio exit was On24 on February 03, 2021.

Date

Exit

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Acquirer

Sources

2/3/2021

IPO

$991

2

4/17/2020

Merger

6

4/4/2019

IPO

$991

13

00/00/0000

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$991

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10

00/00/0000

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10

Date

2/3/2021

4/17/2020

4/4/2019

00/00/0000

00/00/0000

Exit

IPO

Merger

IPO

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Companies

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Valuation

$991

$991

$991

Acquirer

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Sources

2

6

13

10

10

Merrill Acquisitions

13 Acquisitions

Merrill acquired 13 companies. Their latest acquisition was Primax Electronics on September 17, 2007.

Date

Investment Stage

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Total Funding

Note

Sources

9/17/2007

Take Private

Take Private

1

8/2/2007

Leveraged Buyout

1

3/14/2007

$991

Acquired

1/29/2007

Acquired

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$991

$99M

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10

11/17/2006

Take Private

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$991

$99M

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10

Date

9/17/2007

8/2/2007

3/14/2007

1/29/2007

11/17/2006

Investment Stage

Take Private

Acquired

Take Private

Companies

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Valuation

$991

$991

$991

Total Funding

$99M

$99M

Note

Take Private

Leveraged Buyout

Acquired

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Sources

1

1

10

10

Merrill Fund History

4 Fund Histories

Merrill has 4 funds, including ACP Power & Energy VII Real Asset Fund.

Closing Date

Fund

Fund Type

Status

Amount

Sources

2/7/2020

ACP Power & Energy VII Real Asset Fund

$20.08M

1

1/4/2019

LLCP Structured Equity Access Fund VI

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$99M

10

6/3/2014

Blackstone Capital Holdings Fund (Offshore) LP

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$99M

10

CVP A

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$99M

10

Closing Date

2/7/2020

1/4/2019

6/3/2014

Fund

ACP Power & Energy VII Real Asset Fund

LLCP Structured Equity Access Fund VI

Blackstone Capital Holdings Fund (Offshore) LP

CVP A

Fund Type

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Status

Amount

$20.08M

$99M

$99M

$99M

Sources

1

10

10

10

Merrill Partners & Customers

10 Partners and customers

Merrill has 10 strategic partners and customers. Merrill recently partnered with Envestnet on June 6, 2019.

Date

Type

Business Partner

Country

News Snippet

Sources

6/27/2019

Vendor

Envestnet

United States

1

8/6/2018

Vendor

FactSet

United States

FactSet selected as primary market data provider for Merrill Lynch Wealth Management

FactSet , a global provider of integrated financial information , analytical applications , and industry-leading services , today announced it has been selected to be the primary market data provider for Merrill Lynch .

4

4/19/2018

Partner

Age Wave

United States

Thursday, April 19, 2018 9:00 am EDT. Study Finds Women Confident in All but Investing. Women Have Fundamentally Different Journeys to Financial Wellness, Merrill Lynch Study Reveals.

A new Merrill Lynch study conducted in partnership with Age Wave , `` Women and Financial Wellness : Beyond the Bottom Line , '' celebrates the progress made by women while examining the financial challenges women still face throughout their lives , and offers potential solutions .

1

11/28/2011

Partner

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10

6/11/2008

Partner

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10

Date

6/27/2019

8/6/2018

4/19/2018

11/28/2011

6/11/2008

Type

Vendor

Vendor

Partner

Partner

Partner

Business Partner

Envestnet

FactSet

Age Wave

Country

United States

United States

United States

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News Snippet

FactSet selected as primary market data provider for Merrill Lynch Wealth Management

FactSet , a global provider of integrated financial information , analytical applications , and industry-leading services , today announced it has been selected to be the primary market data provider for Merrill Lynch .

Thursday, April 19, 2018 9:00 am EDT. Study Finds Women Confident in All but Investing. Women Have Fundamentally Different Journeys to Financial Wellness, Merrill Lynch Study Reveals.

A new Merrill Lynch study conducted in partnership with Age Wave , `` Women and Financial Wellness : Beyond the Bottom Line , '' celebrates the progress made by women while examining the financial challenges women still face throughout their lives , and offers potential solutions .

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Sources

1

4

1

10

10

Merrill Service Providers

3 Service Providers

Merrill has 3 service provider relationships

Service Provider

Associated Rounds

Provider Type

Service Type

Counsel

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Service Provider

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Associated Rounds

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Provider Type

Counsel

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Service Type

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Partnership data by VentureSource

Merrill Team

215 Team Members

Merrill has 215 team members, including current Senior Vice President, Steven Adkinson.

Name

Work History

Title

Status

Steven Adkinson

Senior Vice President

Current

Jose Alegria

Senior Vice President

Current

Jamie Capone

Senior Vice President

Current

David Cathcart

Senior Vice President

Current

Matthew Reall

Senior Vice President

Current

Name

Steven Adkinson

Jose Alegria

Jamie Capone

David Cathcart

Matthew Reall

Work History

Title

Senior Vice President

Senior Vice President

Senior Vice President

Senior Vice President

Senior Vice President

Status

Current

Current

Current

Current

Current

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