IBDs with the most revenue from alts
The overwhelming majority of independent broker-dealers saw both total revenue and the percent of firm revenue from alternative investments increase in 2013. The lion’s share of that revenue comes from IBD sales of nontraded REITs.
Overall, 2013 saw a return to double-digit revenue growth on average for the largest independent broker-dealers. Executives attributed that to last year’s booming stock market and nontraded REIT sales, which reached almost $20 billion, double a year earlier.
“There were two reasons for last year’s results,” said Eric Schwartz, CEO of Cambridge Investment Research, which saw revenue growth of 24.5% in 2013. “The stock market was up nearly 30%, and there was an unusually high percentage of dollars in alternatives and REITs being sold. Remember, a number of REITs had public listings, and clients reinvested back into other REITs.”
Here’s a ranking of the 10 IBDs with the most 2013 alternative investment revenues.
(By Bruce Kelly, data via InvestmentNews Data's Broker-Dealer Data Center)