Midsize IBD to make its first $1B acquisition
January 22, 2021
By Tobias Salinger, FinancialPlanning.com
A midsize wealth manager is boosting its annual revenue by 40% and its advisor headcount by 75% through its first major M&A deal.
Arete Wealth agreed to purchase Nashville-based Center Street Securities, which has 112 advisors and $1.04 billion in total client assets, the firms said Jan. 15.
Arete and other midsize IBDs with alt specialties such as SFA Partners, DFPG Investments and Cabot Lodge Securities have established strong footholds in the fractured sector, says recruiter Jon Henschen of Henschen & Associates. The focus on alts requires “phenomenal due diligence” over products to avoid costly litigation, Henschen says.
“Smaller firms that are generalists just can’t compete,” he says. “You’ve gotta specialize in something and do it well. If you do it well, it can be very profitable for them.”
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