Advisor Group expected to be sold for $2.3 billion

Private equity buyer would grab a 75% stake in IBD network that produced $1.7 billion in revenue last year and has nearly 11,800 advisers

May 9, 2019 @ 12:20 pm

By Bruce Kelly

Advisor Group, a group of independent contractor broker-dealers with close to 11,800 financial advisers, is close to announcing that it will be acquired by private equity investors for a price tag of $2.3 billion, according to sources familiar with the deal.

The deal could be announced as early as today, those source said.

But as of Thursday morning, it was not entirely clear who would emerge as the buyer, just that the deal was imminent and would eventually give the buyer a 75% stake in Advisor Group.

The two current owners, private equity shop Lightyear Capital and the Public Sector Pension Investment Board of Canada, would retain 25% stake, according to sources who asked not to be identified.

Last month, Bloomberg News reported that private equity manager Centerbridge Partners was in talks to buy Advisor Group; on Thursday morning, Bloomberg updated its reporting and said that Reverence Capital Partners was now the leader in the chase for Advisor Group and nearing a deal.

A spokesman for Lightyear did not return a call for comment. Neither Centerbridge Capital nor Reverence Capital Partners returned calls for comment.

The four broker-dealers in the Advisor Group network are: FSC Securities Corp., Royal Alliance Associates Inc., SagePoint Financial Inc. and Woodbury Financial. According to InvestmentNews data, the four combined to produce $1.7 billion in total revenue last year.


What do you think?

View comments

Most watched


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.


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.

Latest news & opinion

Vermont establishes restitution fund for victims of investment fraud

Portion of settlements with financial perpetrators would supply the pool.

10 IBDs with the most variable annuity revenue

Although the popularity of VAs has declined in recent years, some independent broker-dealers still do a good business in them.

Target-date fund design may be wrong for retirees

Researchers suggest the funds don't adequately hedge against sequence-of-returns risk in retirement.

InvestmentNews' 2019 class of 40 Under 40

Our 40 Under 40 project, now in its sixth year, highlights young talent in the financial advice industry. These individuals illustrate the tremendous potential of those coming up in the profession. These stories will surprise, entertain, educate and inspire.

New Jersey fiduciary rule: Pressure leads to public hearing, comment deadline extension

Industry push results in chance to air grievances on July 17 and another month to present objections.


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 It'll help us continue to serve you.

Yes, show me how to whitelist

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


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print