A private equity-backed holding company which has helped fuel the
Atria Wealth Solutions and Next Financial Group, a Houston-based midsized IBD, agreed to a deal which will move the firm’s more than 500 advisors into Atria’s fold upon its expected closing in the first quarter, the parties
Atria, which is headed by an former Morgan Stanley executive, has purchased three other IBDs since launching in 2017. Next President Barry Knight will keep his role and join Atria’s leadership.
Next’s advisors, who manage some $13 billion in client assets under administration, will not need to make a custodial switch but also won’t receive retention bonuses, Atria spokeswoman Kathleen Hopkins says.
Next will also operate from its current headquarters in Houston, just as fellow Atria-owned IBDs
Private equity capital is flowing into wealth management’s IBD sector, providing the financing for major deals in 2018 such as Lightyear Capital-backed Advisor Group’s
Atria identified Next as “a perfect partner in our mission to reinvent the entirety of the independent wealth advisor service model,” CEO Doug Ketterer said in a statement.
"In our intense effort to provide advisors with the most competitive set of capabilities that will enable them to stay ahead of the rapidly evolving industry and shifting client demands,” he continued, “we need the right partners to join us on this journey.”
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Securities America and Atria Wealth Solutions hired recruiting and operational heads from Ameriprise and Cetera.
June 20 -
The sale will allow Cadaret to provide advisors with future growth opportunities, the 75-year-old co-founder of the IBD said.
April 20 -
The two broker-dealers have a new owner eager to grow the businesses considerably.
January 3
Macroeconomic trends and matters of convenience will move advisors, assets and markets next year in the ever-changing wealth management space.
The firms did not disclose the terms of the deal, which is subject to FINRA approval.
Knight is “thrilled for the next phase of our growth with Atria powering a new breed of solutions,” he added in a separate statement.
“It has taken us a long time to find a partner who embodies our values as an organization and shares our passion to offer advisors a clear path to growth,” he said. “The advisor and client experience platforms Atria is introducing will revolutionize the independent channel.”
Next’s revenue declined in 2015 and 2016 from a peak of more than $130 million in 2014, amid a sector-wide slump
Atria agreed to purchase Next and two subsidiaries — Next Financial Insurance Services and Visionary Asset Management — under the deal, the firms say. The firm’s corporate RIA, has about $1.7 billion in assets under management, according to its latest SEC Form ADV.
Next lists Pershing as its only clearing partner on FINRA BrokerCheck. Next was No. 45 on the FP50 list in 2016, after its revenue slipped 13% year-over-year to $107.8 million.
