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Advisor Group Finds PE Buyer for $2.3 billion Price Tag

By Garrett Keyes May 10, 2019

Private equity firm Reverence Capital has just reached an agreement to buy wealth management network Advisor Group from Lightyear Capital. The deal is for $2.3 billion and will likely be completed by the third quarter of 2019, a source familiar with the deal tells FA-IQ.

Following the sale, Advisor Group intends to create a new advisor retention program alongside Reverence Capital, a press release from Reverence Capital notes. Further details on the new program were not provided by press time.

Reverence “fully understands our business, is well-resourced, and shares our commitment to continued investment in technology and other resources that drive financial advisor success,” Jamie Price, Advisor Group president and CEO, says in the release. “As we move forward with our new owners, our emphasis on being in our advisors’ corner will remain central to all that we do.”

Advisor Group’s wealth management platform supports more than 7,000 financial advisors with $268 billion in client assets.

Following the sale, Advisor Group’s Jamie Price, and the rest of the firm’s existing management team, will continue in their existing roles at Advisor Group.

Rumors have circulated surrounding Advisor Group’s sale for months, with Centerbridge Partners and Genstar Capital also named as potential suitors.

The deal for Advisor Group first surfaced in January when Genstar Capital, a majority interest holder in Mercer Advisors, was said to be interested in purchasing a majority interest in the firm.

Reverence specializes in investing in a diverse range of financial services firms, including asset manager Russell Investments and insurer Venerable and small business lender Kabbage.

It was launched by Goldman Sachs alumni Milton Berlinski and Peter Aberg, and Alexander Chulack from General Atlantic.