The groups work, respectively, with about 1,700 and 600 advisors. “The announced transaction puts us over the 2,000 mark in the aggregate,” said Kestra CEO James Poer in an interview.
In terms of assets under management at its RIAs, Kestra has $21 billion, while H. Beck has about $2.5 billion. (These figures do not include assets under administration.)
“We approached Securian about the organization, and they liked our ideas …,” Poer explained. “We explained that we could provide a great home to and a bright future for H. Beck.”
The firm has other changes in store.
“Kestra is rolling out a robo [advisor] and an investor-portal capability in the fourth quarter [of 2017] and in the first quarter [of 2018],” the CEO said. “We hope to add similar capabilities for H. Beck in short order,” depending on the date the purchase closes and related issues.
(The robo offering for clients includes advisor participation.)
H. Beck has been owned by Securian for the past nine years and will keep doing business as its own RIA and broker-dealer with its own management team based in Bethesda, Maryland. Securian’s history dates to 1880, when its predecessors began work in the life insurance business in Minnesota.
For its part, Kestra did business as NFP Advisor Services until 2016. Insurance broker NFP Corp. sold the group to Stone Point Capital, and it was renamed Kestra. The firm is based in Austin.
“Separating from NFP last year really empowered us to look at the wealth management business,” the CEO said. “We are committed to growth in the space … and are having lots of talks in the marketplace. This is the fruit of that labor.”
Kestra works with Fidelity’s National Financial Services for its custody and clearing services, while H. Beck relies on Pershing.