Lovell Minnick Partners is buying First Allied. The seller is Advanced Equities Financial Corp. Financial terms weren’t announced. The deal is expected to close in fourth quarter. First Allied is a broker-dealer based in San Diego that has about 1,000 financial advisors. Lovell Minnick is a PE firm that targets financial services.
First Allied, a leading independent financial services firm, announced that its management team and Lovell Minnick Partners (Lovell Minnick), a private equity firm that focuses on investments in the financial services industry, have reached an agreement to acquire First Allied from Advanced Equities Financial Corp. (Advanced Equities). First Allied includes the independent broker/dealer, registered investment advisor, wealth management, insurance services and pension services businesses that make up the independent brokerage group of Advanced Equities. Upon closing of the transaction, First Allied will become an independent company and continue to operate under the First Allied brand.
Lovell Minnick is an independent private equity firm that specializes in growth-oriented investments in the global financial services industry. It is widely recognized for its financial services industry knowledge, with a particular focus in the areas of asset management, financial planning, financial product distribution and securities brokerage.
The separation is being undertaken by First Allied and Advanced Equities so that each can concentrate on its core business. The companies will continue to work together through a distribution relationship that will provide for the continued availability of Advanced Equities’ products and services to First Allied’s affiliated independent advisors and their clients.
No operating changes are expected to arise from the separation, which will largely be transparent to First Allied’s advisors and their clients. The company will continue to use the First Allied name and will retain its executive officers.
First Allied President Adam Antoniades said, “At a time when many independent broker/dealers are challenged to find sustainable growth, First Allied continues to succeed by providing a platform that enables its affiliated advisors to grow their businesses. Under the Advanced Equities umbrella, First Allied enjoyed significant growth and we are grateful for the relationship and support. Becoming a free-standing company, with the financial support of a great partner in Lovell Minnick, will provide us with additional flexibility and resources to further accelerate our growth.”
Lovell Minnick Managing Director Robert Belke commented, “This transaction culminates a multi-year search by Lovell Minnick to identify a strong management team and platform investment within the independent broker/dealer channel. First Allied has successfully executed on a strategy focused on premium advisor service and education, and we are committed to supporting that strategy. We are very excited to partner with the existing management team at First Allied to grow their business and take advantage of opportunities to better serve existing and new advisors and clients.”
Co-founder and CEO of Advanced Equities Financial Corp., Dwight Badger, added, “This transaction will allow us to focus on Advanced Equities, Inc., the business we started in 1999 and the part of the business we believe has significant upside potential for our stockholders. We have enjoyed having First Allied as a part of our company and wish the management team, and all of the employees there, well in their future endeavors.”
The transaction is expected to close in the fourth quarter of 2011, subject to customary regulatory reviews and approvals.
About First Allied
First Allied is a full-service, independent broker/dealer with approximately 1,000 financial advisors in 500 branches located throughout the United States. First Allied includes the independent broker/dealer, registered investment advisor, wealth management, insurance services and pension services businesses that make up the independent brokerage group of Advanced Equities. Founded in 1994 as a privately held company, First Allied remains committed to its vision of providing independent financial advisors with innovative products, unparalleled education, affluent lead generation programs, a suite of differentiated products, integrated wealth management solutions and access to subject matter expertise. First Allied fosters an environment that serves and nurtures advisors who want to increase the productivity, size, and profitability of their individual practices. For more information about First Allied, please visit www.firstallied.com.
About Lovell Minnick Partners LLC
Lovell Minnick Partners LLC is a private equity firm focused on providing buyout and growth capital to companies in the financial services industry. From offices in Los Angeles and Philadelphia, Lovell Minnick manages private equity partnerships totaling $800 million on behalf of qualified private and institutional investors. Portfolio companies of Lovell Minnick operate in various areas of the global financial services industry, including asset management, financial product distribution, outsourced administration services, securities brokerage and investment banking, financial consulting, and commercial and trust banks. For more information about Lovell Minnick, please visit www.lovellminnick.com.
About Advanced Equities Financial Corp.
Advanced Equities Financial Corp. (AEFC) is one of the industry’s most progressive financial service firms focusing on retail, institutional securities and venture capital investment banking. Their flagship company, Advanced Equities, Inc., (AEI) specializes in late-stage private equity finance for the U.S. technology sector. AEI bridges the gap between venture money and traditional corporate finance, providing investors with access to the technology sector’s elusive late-stage investments. For more information, please visit www.advancedequities.com.