Richardson Wealth reported record investment management and fee income in the fourth quarter of 2020, the first after the brokerage was consolidated under RF Capital Group Inc.
The firm formerly known as Richardson GMP reported $53.3 million in income from fees and investment management, a 6% increase from Q4 2019. RF Capital Group Inc. closed its acquisition of Richardson Wealth on Oct. 20.
Overall revenue for Richardson Wealth was basically static year over year at $68.7 million, but expenses increased due to $4 million in employee compensation and retention payments related to the transaction. The firm reported a $4.1-million loss in net income for the quarter.
RF Capital reported net income from continuing operations of almost $40 million in Q4, compared to a $5.3-million loss in the same period last year.
“This reported financial performance is not indicative of the earnings potential of the business going forward as the fourth quarter and full year 2020 results include material gains and losses associated with the acquisition of Richardson Wealth: namely a $45.7 million gain on the company’s investment and $6.7 million in transaction costs,” a release from the firm said.
Richardson Wealth ended 2020 with assets under administration totalling $30.3 billion, 6% more than a year earlier.
Last month the firm announced that Richardson Wealth CEO Andrew Marsh is stepping down from his role at the end of March. Marsh has led the firm since 2010.