Advisor Group expected to be sold for $2.3 billion

Advisor Group expected to be sold for $2.3 billion
Private equity buyer would grab a 75% stake in IBD network that produced $1.7 billion in revenue last year and has nearly 11,800 advisers.
MAY 09, 2019

Advisor Group, a group of independent contractor broker-dealers with close to 11,800 financial advisers, is close to announcing that it will be acquired by private equity investors for a price tag of $2.3 billion, according to sources familiar with the deal. The deal could be announced as early as today, those source said. But as of Thursday morning, it was not entirely clear who would emerge as the buyer, just that the deal was imminent and would eventually give the buyer a 75% stake in Advisor Group. The two current owners, private equity shop Lightyear Capital and the Public Sector Pension Investment Board of Canada, would retain 25% stake, according to sources who asked not to be identified. Last month, Bloomberg News reported that private equity manager Centerbridge Partners was in talks to buy Advisor Group; on Thursday morning, Bloomberg updated its reporting and said that Reverence Capital Partners was now the leader in the chase for Advisor Group and nearing a deal. A spokesman for Lightyear did not return a call for comment. Neither Centerbridge Capital nor Reverence Capital Partners returned calls for comment. The four broker-dealers in the Advisor Group network are: FSC Securities Corp., Royal Alliance Associates Inc., SagePoint Financial Inc. and Woodbury Financial. According to InvestmentNews data, the four combined to produce $1.7 billion in total revenue last year.

Latest News

Integrated Partners, Kestra welcome multigenerational advisor teams
Integrated Partners, Kestra welcome multigenerational advisor teams

Integrated Partners is adding a mother-son tandem to its network in Missouri as Kestra onboards a father-son advisor duo from UBS.

Trump not planning to fire Powell, market tension eases
Trump not planning to fire Powell, market tension eases

Futures indicate stocks will build on Tuesday's rally.

From stocks and economy to their own finances, consumers are getting gloomier
From stocks and economy to their own finances, consumers are getting gloomier

Cost of living still tops concerns about negative impacts on personal finances

Women share investing strengths, asset preferences in new study
Women share investing strengths, asset preferences in new study

Financial advisors remain vital allies even as DIY investing grows

Trump vows to 'be nice' to China, slash tariffs
Trump vows to 'be nice' to China, slash tariffs

A trade deal would mean significant cut in tariffs but 'it wont be zero'.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.