Reverence to Take 75% Stake in Advisor Group

Reverence Capital Companions has signed a deal to purchase a 75% stake in unbiased dealer/seller community Advisor Group. The agency’s present house owners, Lightyear Capital and PSP Investments, will retain 25% of the corporate.

Phrases of the deal weren't disclosed. However in line with sources throughout the funding banking group, the Reverence deal values the agency at someplace between $2 to $2.5 billion.

Beneath the deal, Advisor Group will proceed to function independently, and its administration group, together with CEO Jamie Value, will stay. Valerie Brown will step down from her place as govt chairman, though she’s nonetheless an investor within the firm.

Advisors who've caught with the agency will even probably be sharing within the proceeds, through a retention program, to be rolled out to advisors within the subsequent 30 to 60 days. Value advised WealthManagement.com this system would probably be a mix of "recognition," maybe a chance to spend money on the agency.  

“Over the previous three years, a part of the engine that obtained us right here had been our advisors,” Value mentioned. “So to say thanks to them indirectly, form or kind, I feel, is prudent.”

Reverence Capital was considered one of a number of personal fairness bidders within the working to accumulate the b/d community from Lightyear Capital. Centerbridge Companions was additionally reportedly in talks to purchase the agency. Genstar Capital, which owns Cetera Monetary Group, made a late try and bid for the agency, in line with those self same sources, however their supply remained far under the valuation Lightyear and PSP sought.

Reverence Capital is run by former Goldman Sachs banker Milton Berlinski. The agency’s web site says it focuses on a "broad spectrum of middle-market monetary providers corporations." It presently owns Russell Investments and Victory Capital, an funding administration agency.  

“Our view is, and I feel the personal fairness view on this and good investor view is, having scale like we do and working with a shared central service mannequin, which has us appear to be a big single firm, will get the leverage of getting the quantity of belongings that our advisors have, however we nonetheless get to function on the bottom with 4 distinctive manufacturers and capabilities to draw several types of advisors who need to match into varied communities that appear and feel like communities they need to be a part of,” Value added. “I feel it’s vital we’re giant sufficient to make the investments again within the enterprise to assist our advisors serve their shoppers.”

Advisor Group has over 7,000 advisors throughout 4 dealer/sellers: FSC Securities Company, Royal Alliance Associates, SagePoint Monetary and Woodbury Monetary Providers. Previous to its possession by Lightyear, it was a part of AIG. 

 

Advisor Group Timeline

January 1990: SunAmerica, an annuity-focused agency, acquires Royal Alliance Associates, Inc.

January 1996: SunAmerica acquires Benefit Capital Company.

October 1997: SunAmerica acquires Monetary Service Company, the mother or father firm of FSC Securities Company.

April 1998: SunAmerica acquires Sentra Securities Company and Spelman & Co., Inc. ("Sentra-Spelman").

August 1998: AIG buys SunAmerica for $18 billion+ in inventory. The deal consists of 4 of SunAmerica’s broker-dealers: Benefit Capital, Royal Alliance, FSC Securities and SunAmerican Securities, including 9,500 brokers and monetary planners.

February 2005: AIG types AIG Monetary Advisors Inc. with representatives coming from SunAmerica Securities Inc., Sentra Securities Company and Spelman & Co. Inc.

January 2006: American Basic Securities Integrated joins AIG Advisor Group.

October 2008: AIG broadcasts plans to promote AIG Advisor Group. No sale occurs.

January 2009: AIG Monetary Advisors, Inc. (inside Advisor Group) adjustments its title to SagePoint Monetary, Inc.

March 2009: Benefit Capital withdraws Finra registration.

2010: AIG Advisor Group is Renamed ‘Advisor Group.’

December 2012: AIG acquires Woodbury Monetary Providers from The Hartford, including 1,400 reps and $25 billion in belongings below administration.

Might 2016: AIG sells Advisor Group, with $160 billion in belongings below administration and 5,200 unbiased reps, to Lightyear Capital and Public Sector Pension Funding Board.

Might 9: Lightyear and PSP attain a deal to promote a 75% stake in Advisor Group to Reverence Capital Companions, a New York-based personal fairness agency.