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Securities America to Add 60 Reps, $950M in Assets

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Securities America said early Tuesday that it has acquired Dalton Strategic Investment Services, an Indiana broker-dealer with 60 advisors in 18 states, $950 million in client assets and about $7 million in yearly fees and commissions. And, according to CEO and President Jim Nagengast, the independent broker-dealer is looking for more deals.

“Through our extensive experience in collaborating with small firms, Securities America has developed meticulous processes and automation specifically for creating a smooth transition experience for the advisors,” Nagengast said, in a statement. “Our conversations with smaller BDs have increased, and we are looking for additional opportunities in this space.”

Securities America, part of Ladenburg Thalmann (LTS), says it “has partnered with several smaller broker-dealers in recent years to help them become super branches with the company.”

In 2013, the independent broker-dealer added 30 advisors from Eagle One Investments in Washington, Iowa. The year before, it transitioned 140 advisors from Investors Security Co. Inc.

The company added 45 advisors from Equitas and 40 from ePlanning to its operations in 2010, while Brecek & Young Associates, with 260 advisors, came on board in 2009.

“We evaluated 10 other broker-dealers before choosing Securities America as the right partner for our future success,” said Steve Dalton, who founded Dalton Strategic Investment Services in 1988, in a press release. “The cultural fit, technology and practice management support Securities America provides will help us grow our business and develop our advisors, and serve as a strong value proposition for recruiting additional advisors.”

Securities America’s operations include more than 1,800 independent advisors responsible for $54 billion in client assets.

Earlier this year, Securities America rolled out a new business model to attract more wirehouse advisors to the independent channel in cooperation with partner United Advisors and its parent company.

According to Investment Advisor’s 2014 Broker-Dealer Reference Guide, Securities America had sales of $475 million last year. Its reps have average yearly fees and commissions of $271,400.

A year ago, the IBD and NorthStar Financial Services Group formed Arbor Point Advisors, a joint venture that aims to “fill the gap” for independent advisors looking to operate via a hybrid business model with a choice of custodial firms and without the need to run their own RIA, according to partners.

Check out Young Investors Don’t Want Advisors Who ‘Mirror Them’: Securities America on ThinkAdvisor.


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