Cantor Fitzgerald Investment Advisors (CFIA), a subsidiary of US-based investment firm Cantor Fitzgerald, has acquired the asset management business of RIA firm Flippin, Bruce & Porter (FBP).

Financial terms of the deal have not be made public.

FBP provides large cap, value equity, equity income, and balanced portfolio management services for institutional and HNW individuals.

As part of the deal, the Lynchburg, Virginia-based asset management platform will operate out of CFIA with its existing team led by FBP founder and portfolio manager John Bruce.

Bruce will assume the role as senior managing director of the newly formed Flippin, Bruce & Porter business of CFIA, the company said.

The deal is expected to bolster Cantor Fitzgerald’s asset management arm.

Cantor Fitzgerald global head of asset management Michael Millard said: “Cantor Fitzgerald Asset Management continues to provide innovative solutions to the Broker Dealer and RIA community to help solve the challenges their clients face today. One of the biggest challenges facing individual investors is the ability to generate income.

“Flippin, Bruce & Porter’s experience and investment strategies are specifically designed to address this challenge.”

Commenting on the deal, Bruce added: “We are excited to be joining Cantor Fitzgerald’s global brand and utilise CFIA’s extensive experience running successful money management businesses by tapping into their distribution platform.

“As we continued to think about expansion and how to give our clients, employees, and our management teams the best resources possible, this was a decision FBP will greatly benefit from.”

In 2019, Cantor Fitzgerald was fined $2m by the FINRA for flouting short sale and supervisory norms between January 2013 and December 2017.