Cetera Financial Group and its private equity parent company Genstar are reportedly in advanced talks with Voya Financial for the purchase of the latter’s broker/dealer business.
Cetera is eying Voya’s adviser and brokerage relationships and the related assets, according to a report by Wealth Management.
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Voya, which provides retirement services, investment management and employee benefits, oversees $657bn assets under management and administration. It has around 1,600 independent advisers.
The deal, which is expected to be announced this week, could bring Cetera’s adviser workforce to 9,600 across its network of independent broker/dealers.
The broker/dealer business’ back- and middle-office is expected to be consolidated into Cetera, sources within the investment banking community told the publication.
They added that the firm’s field-facing staff are likely to be retrenched if the deal occurs.
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By GlobalDataAs part of the deal, Voya advisers are anticipated to join Cetera’s home office while offices of supervisory jurisdiction at Voya are expected to become part of Cetera Advisor Networks.
The integrated wealth management businesses are likely to join Cetera Advisors, the sources said.
Genstar, which took a majority equity stake in Cetera in 2018, is funding the deal, added the report.
According to a source, the move is part of Cetera’s plan to drive its growth. Since its acquisition by Genstar, the company has made a number of deals.
In September 2020, Falkner Financial Advisors, a family-run financial services firm managing around $100m in assets, switched affiliation to Cetera.
Last August, Nestlehut Financial Services, an Illinois-based team overseeing $275m in assets, joined the firm.
In 2017, Cetera closed the sale of Legend Group Holdings to Lincoln Investment Capital Holdings.
