Cetera to sell broker-dealer that focuses on retirement plans for teachers

Cetera to sell broker-dealer that focuses on retirement plans for teachers
The sale of the assets includes 350 advisers and operates under the broker-dealer holding company Legend Group Holdings.
JAN 11, 2017
As expected, the Cetera Financial Group on Wednesday announced the sale of the assets, including 350 advisers, operating under the broker-dealer holding company Legend Group Holdings. Lincoln Investment Capital Holdings, the parent company of another broker-dealer that also focuses on 403(b) retirement plans, will acquire the Legend advisers, who control $6 billion in assets. Such retirement savings plans are typically available to employees of public education and non-profit organizations. Terms of the transaction, which is expected to close by early next year, were not released. Lincoln Investment Planning will have about 1,100 advisers under its roof once the deal is closed. The firm had 784 producing advisers at the end of last year who generated $223.7 million in revenue and had $23.7 billion in client assets, according to the most recent InvestmentNews survey of independent broker-dealers. Legend Equities Corp. did not complete a survey. Former nontraded real estate investment trust czar Nicholas Schorsch owned Cetera's former parent, RCS Capital Corp., and rapidly built the network in 2013 and 2014. Saddled with debt from that expansion, RCS Capital landed in bankruptcy this January. Mr. Schorsch no longer is involved with Cetera. Cetera Financial emerged in May from a pre-packaged bankruptcy and has been consolidating some of its broker-dealers since. At the time, Cetera said it was likely to sell Legend Equities Corp. The sale of the Legend broker-dealer is the only sale so far of a Cetera firm. Cetera Financial will not follow this sale of a broker-dealers with others, said Robert Moore, CEO. Cetera is “not planning for any other divestitures in near future,” he said. “We feel good about this transaction. Lincoln is a great partner and we wish the group well going forward,” he said, adding that Cetera will continue to focus on helping advisers and institutions deliver wealth management solutions for their clients on a full service basis. “This was a great way to gain size and help us compete with anybody out there in the independent space,” said Ed Forst, president and CEO of Lincoln Investment Capital Holdings. After moving to Lincoln, the Legend advisers will continue to use that brand and the group's headquarters in Palm Beach Gardens, Fla., will continue to operate as part of Lincoln, the companies said in a statement.

Latest News

'Bogged down' advisors just want to have fun (again)
'Bogged down' advisors just want to have fun (again)

Jim Cahn, of Wealth Enhancement Group, lifts the lid on his firm's partnership model, his views on RIA M&A, and the widely slept-on reason why advisors are merging into larger organizations.

Vestwell unveils new emergency savings account offering
Vestwell unveils new emergency savings account offering

The fintech firm is cementing its status in the workplace savings space with its latest ESA offering, which employers can integrate into their existing benefits package.

'Money Mimosas' and other ways to show your Valentine financial love
'Money Mimosas' and other ways to show your Valentine financial love

Wealth managers offer unique ideas for couples to grow closer emotionally and financially.

Limra research finds financial confidence on the rise among Black American workers
Limra research finds financial confidence on the rise among Black American workers

Survey findings suggest increased sense of financial security and more optimistic 2025 outlook, while highlighting employers' role in ensuring retirement readiness.

DOGE efforts sideswipe muni bonds backed by federal lease payments
DOGE efforts sideswipe muni bonds backed by federal lease payments

Falling prices for some securities within the $4 trillion state and local government debt market spotlight how the push to shrink spending is sending shockwaves across the US.

SPONSORED Record growth: Interval funds emerge as key players in alternative investments

Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.