HomeWealth ManagementGenstar Reinvests in Cetera | Wealth Control

Genstar Reinvests in Cetera | Wealth Control


Cetera Monetary Team’s non-public fairness proprietor Genstar Capital has reinvested recent capital into the dealer/broker community from two of its latest price range, Fund XI and Fund X, the corporations introduced Wednesday.

In June, WealthManagement.com first reported that Genstar used to be going to restructure its funding in Cetera, shifting the funding out of its Fund VIII to some other fund, offering some liquidity to buyers and recapitalize the corporate.

Genstar will stay the bulk shareholder in Cetera.

“This reinvestment from Genstar affirms Cetera’s confirmed talent to create price,” Cetera Holdings CEO Mike Durbin stated in a observation. “Secular tailwinds and persevered financial enlargement underpin self assurance in Cetera’s long term. This persevered partnership serves as the basis for Cetera’s subsequent bankruptcy of enlargement as Cetera fulfills its core venture of serving advisors and their purchasers.”

Genstar first received a majority stake in Cetera in 2018. Since then, Cetera has grown from 7,000 advisors and $242 billion of belongings beneath management to 9,000 advisors and $374 billion of AUA recently.

Cetera not too long ago introduced plans to procure Avantax, the $84 billion, tax-focused wealth control company previously referred to as Blucora, in an all-cash deal for $1.2 billion.

Following that announcement, two rankings businesses stated they’re reviewing Cetera’s credit score rankings for a imaginable downgrade, bringing up issues that the purchase may just weaken the corporate’s monetary profile.

In August, the company closed on its acquisition of Securian Monetary, with greater than 91% retention of economic pros within the transition. The counselors becoming a member of represented about $50 billion in consumer belongings, the biggest deal in Cetera’s historical past.

WealthManagement.com not too long ago reported that Tom Halloran, who led the unbiased monetary making plans channel of Voya Monetary Advisors, received through Cetera in 2021, will take over as the pinnacle of Cetera Advisors, the corporate’s conventional unbiased consultant dealer/broker. He replaces Brett Harrison, present president and CEO of Cetera Advisors, who will go out the corporate after 25 years.

The transaction is predicted to near within the fourth quarter.

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