Merrill Lynch and IMG's Investment Advisors Int'l (IAI)
unit formally announced yesterday the formation of a joint
venture to offer personalized financial management services
to athletes and other celebrities (see THE DAILY, 3/14).
The venture, called McCormack Advisors Int'l, will be
structured as a LLC and will be based at IMG's corporate
headquarters in Cleveland. IAI currently has more than
$1.5B in client assets. The new company will offer wealth-
management strategies, as well as advisory services, such as
financial planning, tax preparation, cash and investment
management and income collecting (IMG). BLOOMBERG's Tom
Cahill reports that while specific terms of the agreement
were not disclosed, "ownership of the operation will be
split evenly between Merrill and IMG." Cahill adds that the
"group will have nearly $2 billion in assets from about 500"
clients. Merrill National Marketing Manager Ronald Woods
will be Chair & CEO of the new venture (BLOOMBERG, 7/26).
IMG Senior Exec VP Bob Kain "estimated" that financial
services currently "represent no more than" 5% of IMG's
total business, while "about half" of the agency's clients
use those services. But Kain said that by aligning with
Merrill, he "expects IMG to increase individual assets
managed to $10B "within a few years and to capitalize" on
Merrill's resources "in stadium financing and franchise
sales." He added that the new company "may also buy other
money-management businesses" (Clev. PLAIN DEALER, 7/26).