Cetera Financial Group, a leading network of broker-dealers, has received reinvestment from its private-equity backer, Genstar Capital. This reinvestment comes five years after Genstar's initial investment and aims to provide new capital to fuel Cetera's growth.
A Vote of Confidence amid Rapid Expansion
Genstar's reinvestment in Cetera serves as a vote of confidence in the company's ability to create value. As stated by Mike Durbin, CEO of Cetera's holding company, this continued partnership lays the foundation for Cetera's next chapter of growth while fulfilling its core mission of serving advisors and their clients.
Cetera has been experiencing a period of rapid expansion. Earlier this year, the company acquired the wealth management business of insurer Securian, which added nearly 1,000 advisors to its network. Additionally, Cetera recently announced its intention to acquire Avantax, an independent broker-dealer focusing on tax services, in a $1.2 billion deal. Avantax boasts more than 3,000 financial professionals and $83.8 billion in assets under administration.
Impressive Scale and Reach
With headquarters based in Los Angeles, Cetera Financial Group currently has over 9,000 financial professionals and approximately $374 billion in assets under administration. This significant scale positions Cetera as a leading player within the wealth management industry.
In summary, the reinvestment from Genstar Capital symbolizes the confidence in Cetera Financial Group's ability to thrive and grow. With its expanding network and substantial assets under administration, Cetera continues to solidify its position as a key player in the world of wealth management.
Genstar Capital Announces Additional Investment in Cetera Financial Group
Genstar Capital has announced its latest investment in Cetera Financial Group, continuing its support for the wealth management firm. Since Genstar's initial investment in 2018, Cetera has experienced significant growth, adding approximately 2,000 advisors, 700 employees, and accumulating $130 billion in assets under administration.
Led by its newest fund, Fund XI, Genstar's latest investment reinforces its position as Cetera's majority investor and lead partner, with additional capital from Fund X. Tony Salewski, managing partner of Genstar Capital, expressed confidence in Cetera's future prospects within the wealth management sector due to its size and favorable industry trends.
"The company has surpassed our expectations since our initial investment in 2018, and we believe Cetera will continue to thrive as a key player in the wealth management market," Salewski stated.
Headquartered in San Francisco, Genstar Capital was founded in 1988 and currently manages approximately $49 billion in assets. The firm specializes in investments within financial services, healthcare, industrials, and software sectors.
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