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Kestra Buys 600-Advisor Broker-Dealer

August 9, 2017

Kestra Financial is acquiring H.Beck, an independent broker-dealer, from Securian Financial Group, Kestra says in a press release.

H.Beck, launched in 1984 and owned by Securian for the past nine years, will continue operating as its own RIA and broker-dealer managed by its own executive team, according to the press release. The firm has 600 reps spread across 540 offices nationwide, Kestra says. The deal, the terms of which were not disclosed, is expected to close before the end of the year.

Kestra’s motive for the acquisition, as apparently with other deals, is to “provide additive benefits for both Kestra, advisors and the clients they serve,” a spokeswoman for Kestra and H.Beck tells FA-IQ.

H.Beck’s advisors currently oversee about $2.5 billion in client assets, according to ThinkAdvisor. It’s unclear, however, whether all of H.Beck’s financial advisors are going over to Kestra, which already has about 1,700 advisors. Kestra CEO James Poer tells ThinkAdvisor that the deal will put Kestra’s broker count “over the 2,000 mark in the aggregate.”

As of April, Kestra had added 34 new advisory teams since its spin-off from insurance broker NFP last year.

Poer also tells ThinkAdvisor the transaction will give Kestra access to the Pershing platform. Kestra uses Fidelity’s National Financial Services as its custodian while H.Beck works with Pershing, according to the publication.

James Poer

Many of H.Beck’s advisors didn’t know about the acquisition until the firm announced it yesterday, according to WealthManagement.com. But some of them learned about it from other sources, according to the web publication.

Securian, meanwhile, isn’t exiting the broker-dealer space altogether, as it still owns Securian Financial Services, which has about 1,200 advisors, according to WealthManagement.com.

By Alex Padalka
  • To read the ThinkAdvisor article cited in this story, click here.
  • To read the WealthManagement.com article cited in this story, click here.