After several months of intense industry speculation, Advisor Group said it is being acquired by the private-equity firm Reverence Capital Partners.
The firms did not disclose a price for the deal, but a report from Bloomberg said Centerbridge Partners had offered Advisor Group more than $2 billion about two weeks ago.
Advisor Group’s independent broker-dealers have about 7,000 advisers. The company had $1.7 billion in gross revenue and $268 billion in assets under administration in 2018.
As part of the deal, which is expected to close in the third quarter, Reverence Capital will purchase 75% of Advisor Group from Lightyear Capital, PSP Investments and others shareholders, who will keep a 25% stake.
Jamie Price will remain CEO of Advisor Group, an IBD network, which includes FSC Securities, Royal Alliance Associates, SagePoint Financial and Woodbury Financial Services.
Valerie Brown, will leave her role as Executive Chair–the second announced departure of a top female leader in the industry this week: BNY Mellon Pershing said Wednesday that CEO Lisa Dolly would leave the firm on July 1.
Advisor Group says it is working with Reverence Capital on an advisor recognition and retention program.
“We are extremely fortunate to bring such a highly sought after and respected business into our investment portfolio,” according to Milton Berlinski, Reverence’s co-founder and managing partner.
The IBD network “together with Reverence Capital’s investment, wealth management expertise and industry relationships, … is uniquely positioned to identify and tackle growth opportunities across the business,” he explained.
— Related on ThinkAdvisor: