Ladenburg chairman boasts about growth

Investor Phillip Frost, the largest shareholder in, and chairman of, Ladenburg Thalmann Financial Services Inc., issued a challenge Friday to the independent-brokerage business, saying that his firm's plans to expand are second to none
OCT 11, 2011
Investor Phillip Frost, the largest shareholder in, and chairman of, Ladenburg Thalmann Financial Services Inc., issued a challenge Friday to the independent-brokerage business, saying that his firm's plans to expand are second to none. “It is worth noting that our commitment to growth in the independent-brokerage business is without equal,” he wrote in a letter to the firm's shareholders. Mr. Frost's fortune, made primarily in the pharmaceutical business, is $2.2 billion, according to Forbes. Last year, Forbes ranked him the world's 437th-richest man. In line with Ladenburg Thalmann's growth plans, the firm in August agreed to buy Securities America Inc. for $150 million plus considerations from Ameriprise Financial Inc. It was Ladenburg "s third acquisition of a major independent broker-dealer since 2007, Mr. Frost said. It bought Investacorp Inc. that year and Triad Advisors Inc. in 2008. “We are the strategic player in our industry, committed for the long term to building an industry-best platform to drive profitable growth for our advisors and for the company,” Mr. Frost wrote. Once the Securities America transaction is completed, more than 2,700 independent representatives and financial advisers will be affiliated with firms under the Ladenburg Thalmann umbrella, making it one of the largest independent-broker-dealer networks in the country, he wrote. The firm last year reported revenue of $195 million and a loss of $11 million. The acquisition of Securities America, which typically generates more than $400 million in revenue per year, adds significantly to Ladenburg Thalmann's top line. The firm's goal is to place its independent-broker-dealer operations side by side with its institutional business, Mr. Frost wrote. “Since 2007, our plan has been to marry the stable and recurring revenues of the independent-brokerage business with the more volatile but potentially very profitable investment-banking/capital markets businesses, and we are pleased to report that it is working very well,” he wrote. Email Bruce Kelly at [email protected]

Latest News

Married retirees could be in for an $18,100 Social Security cut by 2032, CRFB says
Married retirees could be in for an $18,100 Social Security cut by 2032, CRFB says

A new analysis finds long-running fiscal woes coupled with impacts from the One Big Beautiful Bill Act stand to erode the major pillar for retirement income planning.

SEC bars New Jersey advisor after $9.9M fraud against Gold Star families
SEC bars New Jersey advisor after $9.9M fraud against Gold Star families

Caz Craffy, whom the Department of Justice hit with a 12-year prison term last year for defrauding grieving military families, has been officially exiled from the securities agency.

Navigating the great wealth transfer: Are advisors ready for both waves?
Navigating the great wealth transfer: Are advisors ready for both waves?

After years or decades spent building deep relationships with clients, experienced advisors' attention and intention must turn toward their spouses, children, and future generations.

UBS Financial loses another investor lawsuit involving Tesla stock
UBS Financial loses another investor lawsuit involving Tesla stock

The customer’s UBS financial advisor allegedly mishandled an options strategy called a collar, according to the client’s attorney.

Trump's one big beautiful bill reshapes charitable giving for donors and advisors
Trump's one big beautiful bill reshapes charitable giving for donors and advisors

An expansion to a 2017 TCJA provision, a permanent increase to the standard deduction, and additional incentives for non-itemizers add new twists to the donate-or-wait decision.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.