Commonwealth open to ‘joint venture’

Commonwealth Financial Network is in the market for a “joint venture” with a financial services company that would expand its platform, said Joseph S. Deitch, the firm’s chief executive.
No deal is imminent, nor is it clear how a particular deal would be structured, he said in an interview Friday.
But Commonwealth of Waltham, Mass., is “open to” a joint venture with a bank, trust company or insurance company, Mr. Deitch said.
“We’ll do anything that makes sense,” he said, adding that he has no interest in taking the company public.
In addition, Mr. Deitch said, “it doesn’t make sense to buy a broker-dealer,” because many representatives in such a deal wouldn’t meet Commonwealth’s minimum in production of fees and commissions of $200,000 a year.
“It’s a lot easier to cherry-pick” he said.
Commonwealth had strong growth last year, increasing its gross revenue by 26.6% to $500 million. It has 1,189 affiliated registered reps and $52.2 billion in client assets.