Sequoia Financial nears $5 billion in assets with acquisition of LJPR Financial Advisors

The acquisition is Sequoia's third since 2016 and adds $776 million to its AUM

Aug 21, 2018 @ 1:27 pm

By Jeff Benjamin

Sequoia Financial Group has taken another step toward the heavyweight ranks of advisory firms with the acquisition of LJPR Financial Advisors.

The addition of Troy, Mich.,-based LJPR, a $776 million firm, pushes Akron, Ohio-based Sequoia to just shy of $5 billion worth of client assets.

The cash and stock deal, which is expected to close by year-end, expands Sequoia's footprint in neighboring Michigan and represents its third deal since 2016.

Citing an average annual historic organic growth rate of more than 15%, Sequoia president Tom Haught said the advisory firm is not making acquisitions as a primary mode of growth.

But he added that Sequoia is prepared to leverage the opportunity to provide succession plans for owners of advisory firms.

"We want to continue to grow because scale and size is important, but we are also aware of the industry's big succession challenge," he said.

Of the five acquisitions Sequoia has made since 2009, Mr. Haught said two were succession plans for advisers moving out of the business.

The LJPR deal is not counted as a succession plan because Leon LaBrecque, who founded the firm 29 years ago, is joining Sequoia as an equity partner and chief growth officer.

Mr. LaBrecque, 62, said he plans to retire at age 70.

The transition to Sequoia will mean "primarily driving content and analyzing solutions, doing public speaking, writing books, and whatever defines a solution," Mr. LaBrecque said.

"LJPR aligns perfectly with our strategy and culture, and complements our existing business exceptionally well," Mr. Haught said.

Sequoia was founded in 1991. Besides Ohio and Michigan, the firm has offices in Florida. With the addition of LJPR, the company will have 91 employees.

0
Comments

What do you think?

View comments

Most watched

INTV

Young professionals see lots of opportunity to reinvent the advice experience

Members of the 2019 InvestmentNews class of 40 Under 40 have strategies to overcome the challenges of being young in a mature industry.

INTV

Young advisers envision a radically different business in five years

Fintech and sustainable investing are two factors being watched closely by some of the 2019 class of InvestmentNews' 40 Under 40.

Latest news & opinion

Wall Street lashes out at Sanders' plan to pay off student debt with a securities trading tax

Financial pros argue that a transaction levy will hurt mom-and-pop investors along with investment houses.

GPB paid B-Ds and reps steep commissions to sell troubled private placements

GPB paid commissions of 9.3%, or $167 million altogether, on the firm's private placements.

Give us a break, active managers say

Seven portfolio managers share their outlooks for the rest of the year, generally agreeing that it's been hard for active managers to stand out.

GPB Capital reports decline in value of two biggest funds

One has dropped by 25.4% and the other by 39%, according to the company.

6 ways Social Security will change in 2020

As the enormous baby boomer generation continues to march toward retirement, they are straining the resources of Social Security. Here are six ways that the nation’s primary retirement income program will change in 2020.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print