Advisor Group buys $40 billion independent brokerage

Advisor Group, a network of independent wealth management firms, is buying a smaller rival that has more than 850 finance professionals and about $40 billion in client assets, the company said.

Advisor Group’s deal for American Portfolios Financial Services is its second acquisition so far this year. Last month, Advisor Group announced that it would buy Infinex Financial Holdings, an independent brokerage that caters to banks, credit unions and financial advisors to financial institutions.

Advisor group

Courtesy of the Advisory Group

It’s also the latest sign of ongoing consolidation in the brokerage space as companies seek greater scale and efficiency in the face of rising technology and regulatory costs.

“This acquisition underscores Advisor Group’s commitment to driving the right kind of growth within a strategic framework that delivers value to all of the entrepreneurial businesses we serve,” CEO Jamie Price said in a statement. . “Over time, we look forward to leveraging our scale and capabilities to better serve American Portfolios finance professionals and their clients.”

Advisor Group has about 9,700 finance professionals and oversees about $515 billion in client assets, according to the company. Its other brands include FSC Securities Corporation, Royal Alliance Associates, SagePoint Financial, Triad Advisors and Woodbury Financial Services. Private equity firm Reverence Capital Partners bought Advisor Group from two other private equity owners in 2019.

Advisor Group has not disclosed the terms of its agreement to buy American Portfolios Financial Services. The acquisition is subject to regulatory approval, Advisor Group said.

American Portfolios Financial Services was founded in 2001 and is based in Holbrook, NY. It has advisers operating in 400 branches across the country, according to the company, which will retain its own brand after the acquisition is complete. American Portfolios Financial Services CEO Lon T. Dolber will join Advisor Group as vice president.

Dolber said in a statement that the agreement with Advisor Group will provide enhanced technology and other capabilities to its firm’s advisors and clients.

“As we look to the future, we recognize that scaling the advisors and practices we support will be critical to long-term sustainability,” Dolber said. Other smaller IBDs were also taken over by larger competitors. For example, in 2021, LPL Financial completed its acquisition of the wealth management business of Waddell & Reed, adding more than 900 independent advisers to its approximately 20,000 advisers.

Write to Andrew Welsch at [email protected]

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