Loring Ward sells wealth management division

Loring Ward International has struck a deal to sell virtually all of the assets and liabilities associated with Loring Ward Capital Management, its private client division.

The Monarch Wealth Advisory Group, a company controlled by Jeffrey B. Wheeler, has agreed to purchase the capital management business. Dependent on the performance of the sold business, Loring Ward anticipates seeing nearly $6.9 million US in revenue from the deal over the next five years.

Loring Ward says with approximately 170 clients and $320 million US in assets under management, LWCM represented the last vestiges of the company’s former business management unit that was sold in 2006.

The sale allows the firm to focus entirely on what it now considers its “core” business of providing “turnkey asset management” through Loring Ward Advisor Services. These services include investment strategies and products, back-office operational processing, education and training, and business development support.

Robert P. Herrmann, CEO of Loring Ward, says he feels confident that the sale of the division to Wheeler, himself a veteran of LWCM, will leave clients in good hands.

“Jeff has tremendous professional skills and experience, as well as the confidence of clients,” stated Herrmann. “Capital Management has been an important component of our portfolio of businesses for many years, but now we will focus completely on building and managing Loring Ward Advisor Services.”

The company says that its Advisor Services has 676 advisor relationships, with over 20,000 clients and $5.1 billion US in assets.

The transaction is expected to close on or before September 30, 2007.

Filed by Mark Noble, Advisor.ca, Mark.Noble@advisor.rogers.com