In even further consolidation of the wealth management area, Cetera Economic Team has entered into a definitive settlement to receive the retail prosperity business enterprise of the Securian Monetary Group.
Below the arrangement, Cetera will receive selected assets—including Securian Financial’s broker-vendor, registered expenditure advisor and insurance agency—as nicely as the equity of Securian Rely on Business, NA, according to the announcement.
As a consequence, much more than 1,000 financial experts throughout 30 impartial corporations representing $47.4 billion in property beneath administration (AUA) and $24.8 billion in assets below administration (AUM) will be integrated as a distinctive community, branded as Cetera Wealth Administration Group, within the Cetera Advisor Networks community.
The transaction also features a wide strategic partnership arrangement aimed at aligning the interests of the two corporations, which includes an arrangement whereby Securian Money will distribute its personal life and annuity goods by means of Cetera’s affiliated monetary experts. In addition, Securian Trust Corporation will grow to be a standalone Cetera entity and will continue to serve its existing advisors and shoppers, as very well as develop to provide Cetera’s other organizations.
“We have prolonged admired Securian Financial’s dedication to their controlling partners, their strong impartial functioning model and dedicated group of independent money pros,” Cetera CEO Adam Antoniades said in a assertion. “Our Prosperity Hub, which uniquely delivers option and adaptability to our money experts as nicely as very best-in-class advancement abilities, is complementary and synergistic to Securian Financial’s functioning design, and we envision untapped progress opportunity for the unbiased economical specialists becoming a member of the Cetera community.”
“This transaction makes it possible for Securian Financial to increase our strategic aim and accelerate development in our precedence markets, although at the identical time continue our dedication to the retail wealth enterprise by our strategic partnership with Cetera,” adds Chris Hilger, Securian Financial’s chairman, president and CEO. “Most importantly, Cetera is a terrific cultural healthy, valuing our one of a kind operating design and determination to accelerating development for money gurus.”
The transaction is expected to close in the third quarter of 2023, pending regulatory acceptance. Phrases of the deal have been not disclosed.
Morgan Stanley and UBS Financial commitment Financial institution are acting as money advisors on behalf of Cetera, although Willkie Farr & Gallagher LLP is acting as legal advisor. For Securian, Goldman Sachs is acting as economic advisor and Eversheds Sutherland is acting as authorized advisor.