Cetera Financial Group is reportedly in talks to buy some of the broker-dealer assets of Voya Financial, according to industry sources who expect the deal to be announced as soon as Monday or Tuesday.
The acquisition from Voya Financial Advisors could add over 1,000 financial professionals to Cetera’s roughly 8,000. The talks were first reported Saturday by Wealth Management,
“Whew. This would be a big deal. Literally. 1,600+ advisors at Voya? The search for B/D scale continues (and Voya seems to think that PE investors into B/Ds make it a good valuation to sell?)?” tweeted blogger and financial planner Michael Kitces on Sunday.
Cetera is owned by the private equity firm Genstar Capital, which bought a majority stake in the firm in 2018.
Voya, which sells insurance and other financial products, is a publicly traded entity spun off from ING in 2013.
“One step closer to proverbial ‘freedom’ for those advisors though. Sounds good for them.,” responded Daniel Yerger, president of My Wealth Planners, on Twitter.
Voya and Genstar declined to comment on the matter. Cetera did not respond to a request for comment as of press time.
What makes the reported deal “super interesting” is the ING connections between the different players, said one industry insider close to firms involved in the talks who preferred to go unnamed.
Overall, the Voya development is part of the trend of insurance companies exiting the advisor business, the source explained, adding that Cetera has experience buying and integrating BDs from insurers — such as those previously owned by MetLife.