More changes are on the way for the reorganizing Cetera Financial Group.
The network of independent broker/dealers announced Wednesday the divestiture of The Legend Group to Lincoln Investment. The deal is expected to close in early 2017 and financial terms weren’t disclosed.
Lincoln Investment will acquire $6 billion of the Legend Group’s common interests and assets, which are primarily held in 403(b) plans. Some 350 independent financial advisors supported by The Legend Group will transition to Lincoln Investment but will continue using The Legend Group brand name. The Legend Group’s headquarters in Palm Beach Gardens, Fla., will continue to operate as part of Lincoln Investment.
For Lincoln Investment, the transaction enhances the firm’s scale and ability to compete in the mass affluent and high net worth space. The combined business has more than 1,100 advisors managing $30 billion in client assets.
The divestment comes just two days into Robert Moore’s tenure as the new CEO of Cetera, replacing Larry Roth, and shows the company isn’t yet done with the corporate reorganization it's undertaken since parent company RCS Capital emerged from bankruptcy.
In a statement, Moore said The Legend Group’s business did not fit with Cetera’s new focus on supporting advisors with a full-service retail b/d.
“As publicly disclosed earlier this year, our exploration of a potential sale of The Legend Group was guided by our plan to exit businesses that were not core to our future growth plans, combined with our commitment to identify a transaction opportunity with a company that understands and supports The Legend Group’s unique strengths in the 403(b) plan space,” Moore said in a statement. “We see this transaction as a very positive development for the advisors and institutions Cetera supports, as well as the advisors affiliated with The Legend Group."
When asked about additional changes to Cetera's structure, Moore told WealthManagement.com that he does "not anticipate any significant changes to Cetera's b/d network beyond what we have previously disclosed on a public basis as part of our strategic transformation process earlier this year, but as with any company, we are ready to adjust our organization as market and industry conditions merit over the long term."
