COURTESY OF ADVISOR GROUP
It’s also the latest sign of ongoing consolidation in the broker-dealer space as firms seek greater scale and efficiency in the face of rising technology and regulatory costs.
“This acquisition underscores Advisor Group’s commitment to generating the right type of growth as part of a strategic framework that delivers value to all 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 financial professionals and their clients.”
Advisor Group has approximately 9,700 financial professionals and oversees approximately $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 purchased Advisor Group from two other private equity owners in 2019.
Advisor Group did not disclose terms of its deal 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, N.Y. It has advisors operating in 400 branch offices across the country, according to the firm, which will maintain its own brand once the acquisition is complete. American Portfolios Financial Services CEO Lon T. Dolber will join Advisor Group as vice chairman.
Dolber said in a statement that the deal with Advisor Group will provide enhanced technology and other capabilities for his firm’s advisors and clients.
“As we look to the future, we recognize that building scale for the advisors and practices we support will be essential to long-term sustainability,” Dolber said. Other smaller IBDs have also been bought up by larger competitors. For instance, in 2021, LPL Financial closed its acquisition of Waddell & Reed’s wealth management business, adding more than 900 independent advisors to its roughly 20,000 advisors.
Write to Andrew Welsch at andrew.welsch@barrons.com