Private Equity Buys Cetera for $1.7 Billion
After much speculation about just who might acquire it, Cetera Financial will apparently be bought by private equity outfit Genstar Capital, Bloomberg reports.
The deal, the terms of which were not revealed by either firm, is expected to close by the end of September, the news service writes. But people familiar with the deal who asked to remain unnamed tell Bloomberg Genstar will hand over around $1.7 billion for the broker-dealer network. Meanwhile, Cetera execs will retain a stake in the firm, according to a statement from the two companies cited by the news service.
“We’re excited to work closely with the team at Cetera to build on the company’s longstanding leadership in the financial advice space, and to support the growth and success of its nearly 8,000 financial advisors across the country,” Genstar managing director Tony Salewski says in the statement cited by Bloomberg.
The infusion of capital will give Cetera funds to invest in systems and operations as well as technology, the news service writes.
Goldman Sachs acted as Cetera’s financial advisor on the deal, Bloomberg writes. When Cetera said in February it had selected Goldman to review its capital structure, rumors quickly surfaced that the financial planning network was considering a sale.