Independent Financial Group of San Diego, which is marketed as IFG, over the summer acquired the assets of another Southern California broker-dealer, NPB Financial Group in Burbank, with 38 reps and financial advisers who control $1.2 billion in assets.
The terms of the deal have not been disclosed, said David Fischer, co-founder of IFG, which has about 600 reps and financial advisers under its roof and $257 million in revenue last year. In so-called "asset deals," the acquiring firm essentially buys the financial advisers and not the working business of the broker-dealer. According to its BrokerCheck profile, in August, NPB Financial filed its closing notice with the Financial Industry Regulatory Authority Inc.
"The two companies aligned with their culture and values," Fischer said in an interview Wednesday morning. "It was a nice agreement for both of us. This is our first foray into an acquisition or asset purchase, and we’re interested in doing more."
The former chief operating officer of NPB Financial, Shirley Coria, declined to comment. Neal Nakagiri, NPB's CEO and chief compliance officer, passed away earlier this year. He was 67.
The deal, which closed in July and hasn't been publicly announced, is the latest in a modest string of broker-dealer acquisitions occurring against the backdrop of the red-hot mergers and acquisitions market for registered investment advisers. In August, for example, RIA M&A activity set another monthly record, with 24 transactions comprising $31.6 billion in assets under management.
Fischer said that there's a place in the market for a growing broker-dealer like IFG to compete with the variety of broker-dealer networks and aggregators who typically drive deals. For example, Advisor Group Inc. announced two broker-dealer acquisitions recently, one in May and the other in June.
"A lot of big firms are getting into this industry, and we’re in the happy medium," he added.
In an era of AI euphoria and market FOMO, getting back to basics with fixed income may be the most contrarian and most important move advisors can make.
Voya Financial adds private equity, credit and real estate options to its AMA program, building on support for looser federal investment rules in retirement accounts.
Shannon Reid, president of Osaic and the network’s number two executive, has plenty of challenges, industry executives said.
Auditors flagged the commingling. The COO allegedly knew. Investors kept getting the pitch
The advisors on the move include two brothers leading a family practice in Connecticut, and a husband-and-wife tandem working with business owners in the West Coast.
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.
