RCS Capital said late Wednesday that it was buying independent broker-dealer Girard Securities. The news came just a day after RCAP said its rapidly growing IBD network will be called Cetera Financial Group and that is was expanding platforms and services for advisors.
“We view Girard, along with our recently announced agreement to acquire VSR Group, as another example of an exciting accretive ‘tuck-in’ acquisition for our retail investment advice platform,” said Cetera Financial Group CEO Larry Roth, in a press release.
Based in San Diego, Calif., Girard includes 250 affiliated advisors and over $10 billion of client assets under administration. The reps have average yearly fees and commissions of $210,000.
Upon completion of the Girard deal, RCAP’s retail-advice network should include 9,700-plus independent advisors. Last week, RCS Capital — which is led by Executive Chairman Nicholas Schorsch — shared its plans to buy VSR Group of Overland Park, Kansas, for an undisclosed amount. VSR has some $12.3 billion in client assets and 264 affiliated advisors.
(As of June 30, rival IBD LPL Financial had some 13,840 affiliated independent reps. It hosted its annual FA conference this week in San Diego.)
“This transaction represents another successful step in solidifying RCAP as a leading independent retail advice platform,” RCAP President Michael Weil explained in a statement.
“This transaction, coupled with our recently announced agreement to acquire VSR Group, further demonstrates our commitment to capitalize on external growth opportunities in order to further strengthen RCAP’s leading platform,” Weil added. Richard Woltman, who serves as chairman emeritus of Girard’s board, founded First Affiliated Securities some 40 years ago with two partners. First Affiliated went on to become First Allied, and it joined RCAP last year.
“We believe RCAP’s commitment to maintaining the separate identity and culture of Girard was one of the most attractive aspects of this combination,” said Gerard CEO and Chairwoman Susie Woltman Tietjen, in a press release. “This transaction will allow Girard to leverage the resources of what we believe to be one of the industry’s fastest growing and most innovative firms.”
Cetera Financial Group expects the transaction should close in late 2014 or early 2015, subject to certain regulatory approvals and associated conditions.
On Tuesday, Roth explained that Cetera Financial Group is not looking to change the custodial arrangements of its advisors, “Pershing has been an important partner and should be part of our strategy going forward,” he said at the time. “We have no plans to disrupt the partnership.”