October 13, 2023

Cetera announces equity reinvestment from Genstar Capital to fuel next chapter of growth

Reinvestment enables Cetera, the premier Wealth Hub, to continue serving advisors and their clients in new and innovative ways as part of Cetera’s next chapter of growth

Existing investor Genstar Capital to invest fresh equity from its two newest funds, which together with its active funds, has approximately $49 billion of assets under management

Announcement follows Cetera Holdings’ recent hiring of CEO Mike Durbin as well as closing the acquisition of Securian Financial’s Retail Wealth Business with record levels of asset retention

LOS ANGELESOct. 4, 2023Cetera Financial Group (“Cetera” or the “Company”), the premier financial advisor Wealth Hub, announced today a reinvestment by Genstar Capital (“Genstar”), a leading private equity firm focused on investments in targeted segments of the financial services, software, industrials, and healthcare industries.

Genstar originally invested in Cetera in 2018. Under Genstar’s ownership, Cetera has transformed into an essential partner for its independent advisor and financial institution clients, offering critical solutions and support to enable growth. Genstar’s new investment is led by its newest fund, Fund XI, with additional capital from Fund X, and positions Cetera for continued growth and success. Genstar will remain Cetera’s majority investor and lead partner.

“This reinvestment from Genstar affirms Cetera’s proven ability to create value,” said Cetera Holdings CEO Mike Durbin. “Secular tailwinds and continued economic growth underpin confidence in Cetera’s future. This continued partnership serves as the foundation for Cetera’s next chapter of growth as Cetera fulfills its core mission of serving advisors and their clients.”

“Over the past five years, Cetera has grown from approximately 7,000 advisors and 1,300 employees supporting $242 billion of assets under administration (“AUA”) in 2018 to approximately 9,000 advisors and 2,000 employees supporting $374 billion of AUA today,” said Cetera Financial Group CEO Adam Antoniades. “The management team has high conviction in its strategy and vision for Cetera as a Wealth Hub going forward and appreciates Genstar’s partnership in pursuit of long-term success.”

“We could not be prouder to partner with Cetera and this management team,” said Tony Salewski, Managing Partner of Genstar Capital. “The Company has exceeded expectations since our initial investment in 2018, and we expect Cetera to continue this growth path as a scale player in the wealth management market. Cetera’s position in the ecosystem enables it to benefit from continued tailwinds.”

Sid Ramakrishnan, Director of Genstar Capital, added “The reinvestment reflects the strong results we have achieved together and represents conviction in Cetera and its management team going forward.”

Moelis & Company LLC and Morgan Stanley & Co. LLC served as financial advisors and Willkie Farr & Gallagher LLP served as legal counsel to Cetera and Genstar.

The transaction is expected to close in the fourth quarter of 2023, subject to the receipt of regulatory approvals and the satisfaction of other closing conditions.

About Cetera Financial Group®

Cetera Financial Group (Cetera) is the premier financial advisor Wealth Hub where financial advisors and institutions optimize their control and value creation. Breaking away from a commoditized and homogenous IBD model, Cetera offers financial professionals and institutions the latest solutions, support, and services to grow, scale, or transition with a merger, sale, investment, or succession plan. Cetera proudly serves independent financial advisors, tax professionals, licensed administrators, large enterprises, as well as institutions, such as banks and credit unions, providing an established and repeatable blueprint for scalable growth.

Home to more than 9,000 financial professionals and their teams, Cetera oversees approximately $374 billion in assets under administration and $145 billion in assets under management, as of September 25, 2023. In a recent advisor satisfaction survey of more than 21,000 reviews, Cetera’s Voice of Customer (VoC) program vigorously measures advisor experience and satisfaction 24/7. Currently, it’s ranked 4.8 out of 5 stars.

Visit www.cetera.com, and follow Cetera on LinkedIn, YouTube, Twitter and Facebook.

“Cetera Financial Group” refers to the network of independent retail firms encompassing, among others, Cetera Advisors LLC, Cetera Advisor Networks LLC, Cetera Investment Services LLC (marketed as Cetera Financial Institutions or Cetera Investors), and Cetera Financial Specialists LLC. All firms are FINRA/SIPC members. Located at: 655 W. Broadway, 11th Floor, San Diego, CA 92101. Cetera is under separate ownership from any other named entity.

Individuals affiliated with Cetera firms are either Registered Representatives who offer only brokerage services and receive transaction-based compensation (commissions), Investment Adviser Representatives who offer only investment advisory services and receive fees based on assets, or both Registered Representatives and Investment Adviser Representatives, who can offer both types of services.

About Genstar Capital

Genstar Capital (www.gencap.com) is a leading private equity firm that has been actively investing in high-quality companies for over 30 years. Based in San Francisco, Genstar works in partnership with its management teams and its network of strategic advisors to transform its portfolio companies into industry-leading businesses. Together with Genstar XI and all active funds, Genstar currently has approximately $49 billion of assets under management and targets investments focused on targeted segments of the financial services, software, industrials, and healthcare industries.

SOURCE Cetera Financial Group

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