Cetera reportedly exploring $1.5 billion sale

The company confirmed it's talking to investment bankers to 'explore how to best optimize [its] capital structure at lower costs.'
FEB 23, 2018

Cetera Financial Group, a network of six broker-dealers, is exploring a sale that could be worth about $1.5 billion, according to a Bloomberg report. The company, which houses around 8,000 brokers and advisers, began interviewing potential advisers to run the sale earlier this month, according to the report, which cited anonymous sources familiar with the matter. A spokesman for Cetera wouldn't confirm the company is for sale, but said the firm is "engaging investment banking partners to explore how to best optimize [its] capital structure at lower costs." Cetera's former parent company, RCS Capital Corp., filed a prearranged Chapter 11 bankruptcy reorganization in 2016. Cetera Financial Group is now owned by RCS Capital's former first and second lien holders, including private-equity firms Fortress Investment Group and Carlyle Investment Management, as well as money manager Eaton Vance. "Any next steps that we take to optimize our capital structure will prioritize the success and well-being of the financial advisors and institutions we're privileged to serve," the Cetera spokesman said. An earlier story by industry publication Financial Advisor reported Goldman Sachs & Co. as the firm selected by Cetera to explore the firm's options. Robert Moore, the CEO of Cetera, indicated in an interview with InvestmentNews in November that Cetera didn't have plans to sell the company. "There is an abundance of investors who wish to get involved with us, but we are not looking for a private equity firm to come buy us," Mr. Moore said at the time. The six firms that make up the independent broker-dealer network are: Cetera Advisor Networks, Cetera Advisors, Cetera Financial Institutions, Cetera Financial Specialists, First Allied Securities and Summit Financial Services Group.

Latest News

SEC to lose Hester Peirce, deepening a commissioner crisis
SEC to lose Hester Peirce, deepening a commissioner crisis

The "Crypto Mom" departure would leave the SEC commission with just two members and no Democratic commissioners on the panel.

Florida B-D, RIA owner pitches bold long-term plan to sell to advisors
Florida B-D, RIA owner pitches bold long-term plan to sell to advisors

IFP Securities’ owner, Bill Hamm, has a long-term plan for the firm and its 279 financial advisors.

Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships
Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships

Meanwhile, a Osaic and Envestnet ink a new adaptive wealthtech partnership to better support the firm's 10,000-plus advisors, and RIA-focused VastAdvisor unveils native integrations with leading CRMs.

Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions
Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions

A former Alabama investment advisor and ex-Kestra rep has been permanently barred and penalized after clients he promised to protect got caught in a $2.6 million fraud.

Why the evolution of ETFs is changing the due diligence equation
Why the evolution of ETFs is changing the due diligence equation

As more active strategies get packaged into the ETF wrapper, advisors and investors have to look beyond expense ratios as the benchmark for value.

SPONSORED Are hedge funds the missing ingredient?

Wellington explores how multi strategy hedge funds may enhance diversification

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management