Atria to buy a $4B firm using growth capital
February 3, 2021
By Tobias Salinger, FinancialPlanning.com
A wealth management holding company with a different approach than most private equity-backed acquirers is buying its sixth independent broker-dealer.
Atria Wealth Solutions agreed to acquire SCF Securities, a Fresno, California-based IBD with 150 registered representatives and $4 billion in assets under administration, the firms announced Jan. 27. The parties didn’t disclose the financial terms of the deal, which they expect to close by July. Atria is buying 100% of the IBD, its insurance agency, and its RIA, dubbed SCF Investment Advisors.
Lee Equity Partners, the New York-based acquiring firm’s parent, supplied Atria with institutional growth equity capital directly from the PE firm’s investors rather than issuing debt for a leveraged buyout, according to recruiter Jon Henschen.
Henschen classifies midsize SCF as part of a select group of “fiduciary-friendly” BDs that offer more choice and lower prices for reps on technology, advisory account fees, and other shared corporate services.
“You’re not calling into a phone tree and having all of those frustrations that you get at larger broker-dealers,” Henschen says. “I thought it was a good move for both sides to bring the two together.”
Read the fulll article on FinancialPlanning.com
