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.
By listening for what truly matters and where clients want to make a difference, advisors can avoid politics and help build more personal strategies.
JPMorgan and RBC have also welcomed ex-UBS advisors in Texas, while Steward Partners and SpirePoint make new additions in the Sun Belt.
Counsel representing Lisa Cook argued the president's pattern of publicly blasting the Fed calls the foundation for her firing into question.
The two firms violated the Advisers Act and Reg BI by making misleading statements and failing to disclose conflicts to retail and retirement plan investors, according to the regulator.
Elsewhere, two breakaway teams from Morgan Stanley and Merrill unite to form a $2 billion RIA, while a Texas-based independent merges with a Bay Area advisory practice.
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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.
