Advisor Group says it is acquiring American Portfolios Financial Services, an independent broker-dealer with some 850 financial professionals working with $40 billion in client assets, for an undisclosed sum. The firms expect the deal to close in the third or fourth quarter.
The news comes just a month after Advisor Group announced plans to buy Infinex Financial, which includes a BD with about 750 financial professionals who oversee $30 billion in client assets and some 230 community-based bank and credit union programs.
Headquartered in Holbrook, New York, American Portfolios is led by Lon Dolber, who plans to remain the firm’s chairman, CEO and president, and to join Advisor Group as vice chairman.
While American Portfolios will become a member of Advisor Group’s network, it will continue to do business using its own brand and operating model.
“It’s highly unusual to find an entrepreneur who has built a business from hiring employee No. 1 to … all of those now with the firm today,” said Advisor Group’s president and CEO, Jamie Price, in an interview.
“The firm has been staunchly independent, and [Dolber] was not looking for an exit … ,” Price explained. “But he was looking to partner [with another entity] in order to expand both the growth and the advisor capabilities of American Portfolios, so it could better serve clients. … We’re honored to be able to partner with them.”
Dolber, who started the firm 21 years ago, said in a statement: “As we look to the future, we recognize that building scale for the advisors and practices we support will be essential to long-term sustainability. … The opportunity to work with a partner that understands our culture and success … makes good business sense, and we found that with Advisor Group and the backing of [its owner] Reverence Capital Partners.”
What Next for Industry M&A?
Advisor Group has been busy on the acquisition front, doing about 30 deals over the past five years.