Recapitalization? SPACs? Cetera’s PE backer shares long-term plans
October 15, 2020 By Tobias Salinger, Financial Planning Excerpt: Cetera is “a flywheel; It just keeps getting better and better,” Tony Salewski, a Genstar managing partner and Cetera board member, said at a virtual event for advisors this week. “It's a business that we want to hold for a very long time.” Salewski noted that his PE firm’s investments typically carry a five- to 10-year timeline. He also mentioned last year’s Mercer Advisors recapitalization deal between Genstar, Lovell Minnick Partners and Oak Hill Capital. Genstar sold Mercer “to ourselves in a new fund” in order to extend “from that initial five years to re-underwriting another 10 years,” Salewski said. The message comes as the Los Angeles-based independent broker-dealer network and other large wealth managers face reduced business under the low interest rates triggered by the economic toll of the...
