Centerbridge said to be in talks to buy Advisor Group

Centerbridge said to be in talks to buy Advisor Group
Advisor Group's independent broker-dealer network in the U.S. has more than 7,000 advisers.
APR 23, 2019

Centerbridge Partners is in talks to buy independent broker-dealer Advisor Group Inc. for more than $2 billion, according to people familiar with the matter. The private equity firm could reach a deal as soon as this week to acquire Advisor Group, said the people, who asked to not be identified because the matter isn't public. A deal hasn't been finalized and talks could fall through, the people said. The company, which has been working with an adviser to explore a sale, has drawn interest from other private equity firms and broker-dealers, the people said. In 2016, American International Group Inc. sold Advisor Group to private equity firm Lightyear Capital and the Public Sector Pension Investment Board of Canada. A representative for Lightyear declined to comment. Representatives for Advisor Group, Centerbridge and PSP didn't immediately respond to requests for comment. Advisor Group's independent broker-dealer network in the U.S. has more than 7,000 advisers offering sales, administrative, compliance support, technology and other wealth management services, according to its website. The company had $1.7 billion in gross revenue and $228 billion in assets under administration in 2018 — both increasing 20% from the previous year, according to a statement on its website. (More: From the C Suite with Advisor Group's Valerie Brown) The company's firms include FSC Securities, Royal Alliance, SagePoint Financial and Woodbury Financial. Centerbridge, based in New York, invests in private equity, credit and real estate. The firm had about $28 billion under management at the end of 2018, according to a statement this month.

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