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Lovell Minnick buys the San Diego IBD from Advanced Equities
August 22, 2011 — 2:56 PM UTC by Brooke Southall
Brooke’s Note: I learned of this deal right before it was time to send out RIABiz Today and so I didn’t have time to get analysis. But it’s notable that yet another part of the independent advisory world is in the hands of private equity owners. Warburg Pincus recently bought a controlling interest in The Mutual Fund Store. In the IBD realm, LPL, HD Vest and Cetera are already owned largely by private equity firms. Our other big story today focuses on HighTower, an aggregator backed by private equity. The so-called smart money is seemingly every where you turn.
A private equity firm is acquiring First Allied Securities from Advanced Equities Financial Corp.
Lovell Minnick Partners of Philadelphia and Los Angeles is acquiring the San Diego-based broker-dealer. The transaction is expected to close in the fourth quarter of this year.
First Allied and Advanced Equities are making the move so that each can concentrate on its core business. The companies will continue to work together through a distribution relationship that will provide for the continued availability of Advanced Equities’ products and services to First Allied’s affiliated independent advisors and their clients. See: First Allied pushes the advisory envelope with hire of LPL executive.
Advanced Equities of Chicago generally works with higher-end clients, focusing on retail, institutional securities and venture capital investment banking. It specializes in late-stage private equity finance for the U.S. technology sector, bridging the gap between venture capital money and traditional corporate finance, providing investors with access to the technology sector’s elusive late-stage investments.
First Allied is a full-service, independent broker/dealer with approximately 1,000 financial advisors in 500 branches located throughout the United States.
Steady as she goes
No operating changes are expected to arise from the separation, which will largely be transparent to First Allied’s advisors and their clients. The company will continue to use the First Allied name and will retain its executive officers.
“Becoming a free-standing company, with the financial support of a great partner in Lovell Minnick, will provide us with additional flexibility and resources to further accelerate our growth,” First Allied president Adam Antoniades said in a release.
Lovell Minnick has patiently sought an opportunity like this one, managing director Robert Belke says in a release.
“This transaction culminates a multi-year search by Lovell Minnick to identify a strong management team and platform investment within the independent broker/dealer channel. First Allied has successfully executed on a strategy focused on premium advisor service and education, and we are committed to supporting that strategy.
Lovell Minnick manages private equity partnerships totaling $800 million on behalf of qualified private and institutional investors.
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