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March 15, 2023 at 12:18 PM
What You Need to Know
- The acquisition of SSG will help Altruist double the footprint of its RIA-exclusive services and products.
- Specific deal terms were not disclosed but it was a mostly cash transaction, Altruist CEO Jason Wenk said.
- The news comes shortly after the launch of Altruist Clearing, an all-in-one custodian for RIAs.
Altruist said Wednesday it acquired rival Shareholders Service Group, a brokerage and custodial platform serving more than 1,600 advisors across the U.S.
SSG’s leadership team brings to Altruist a “tradition and culture of best-in-class RIA custody services,” according to Altruist, a fintech firm that serves as a custodian for independent registered investment advisors.
The acquisition will help Altruist “double the footprint of its RIA-exclusive” services and products, which already include billing, digital account opening, reporting and trading, it said.
Specific deal terms were not disclosed but it was a mostly cash transaction, said Jason Wenk, CEO and founder of Altruist.
The transaction was completed and is pending approval of the Financial Industry Regulatory Authority, which Altruist expects will happen in the next two to four weeks, according to Wenk.
Conversations between the firms started in the fourth quarter of 2022, Wenk said, adding Altruist was approached by Broadhaven Capital Partners, SSG’s investment banker.
“This acquisition enhances our mission to make financial advice better, more affordable, and accessible to everyone,” Wenk said in a news release announcing the deal. “Our firms have strong alignment on the substantial value financial advisors add to their clients’ lives and how we can empower them to reach more people.”
The news comes shortly after the launch of Altruist Clearing, an all-in-one custodian for RIAs.
Explaining the reasoning behind the transaction for both firms, Altruist said it “identified an opportunity to partner and integrate with fellow RIA service providers” while, after operating for more than 20 years and “scaling to thousands of advisors, the SSG leadership team was looking for the ideal partner for the next opportunity of growth and innovation.”
