Advisor Group rolls with another B-D acquisition

Building on its recent acquisitions, Advisor Group said Wednesday that it had agreed to buy American Portfolios Financial Services Inc., a large independent broker-dealer based in Long Island, New York.

Terms of the deal, which is subject to regulatory approval, were not disclosed. Upon completion of the deal, Lon Dolber, chairman and CEO of American Portfolios, will join Advisor Group as vice chairman. American Portfolios has 850 advisers across the country who work with close to $40 billion in client assets. 

This is the second large broker-dealer acquisition by Advisor Group in as many months. In May, Advisor Group said it had agreed to buy a bank-focused broker-dealer, Infinex Investments Inc., with 750 financial advisers who control more than $30 billion in client assets.

With 9,700 financial advisers under the roofs of half-a-dozen broker-dealers, Advisor Group is one of the largest broker-dealer networks in the industry. Advisor Group's registered reps and financial advisers control close to $515 billion in client assets.

Once the acquisition is completed, American Portfolios Financial Services will continue to do business under its own brand and maintain its current operating model, Advisor Group said in a statement.

In 2019, private equity manager Reverence Capital Partners bought 75% of Advisor Group from Lightyear Capital, PSP Investments and other investors. A year later, Advisor Group finished its acquisition of Ladenburg Thalmann Financial Services Inc., creating a behemoth organization.

Advisor Group faces several long-term questions in the market. Will it become a public company, and, if so, when will its initial public offering take place? Or will it remain private, with its largest owner, Reverence Capital Partners, selling it in a few years to another private investor?