An expected increase in IPOs and M&A activity this year means more money in motion and more wealth management business, says Doug Regan, president of Northern Trust's wealth management group.

An uptick in initial public offerings and mergers and acquisitions portends good news for the wealth management business, said Doug Regan, president of Northern Trust’s wealth management group.

“The ultra-high net worth space all benefits from a strong M&A and liquidity environment,” Regan told this publication in an interview. “When money is in motion, prospects are required to make decisions on where to place funds. But when that environment is not in place, it’s a take-away game between firms. Inertia is a very strong factor in a slow economy," he said.

Regan cited statistics from Renaissance Capital showing the number of IPOs peaking at 272 in 2007, crashing to 42 in 2008 and rising to 63 last year.

The rebound is expected to continue this year, he said.

“We’re starting to see a slow positive turn in the IPO/M&A market,” Regan noted. “The money in motion as a result of those liquidity events will create lots of opportunities for ultra-high net worth service providors.”

In addition to eyeing newly created liquidity, Northern’s wealth management group also plans to focus on centers of influence this year, according to Regan.

“We’re working harder to educate and cultivate centers of influence,” he said. “We think they will be critical to help grow our business.”

On Tuesday Northern Trust Corporation reported net income dipping slightly in the first quarter to $157.2 million. But trust, investment and other servicing fees from its Personal Financial Services division, which includes wealth management, increased 7 per cent to $217.8 million.

The increase was “primarily a result of higher market valuations and new business,” the company said in a statement.