Cetera Takes Minority Stake in $2.5B Firm

The firm is also partnering with advisors to provide a suite of succession solutions, including advisor-to-advisor support, business continuity solutions and practice monetization, Cetera said.

As a recent example, Cetera said that, in early 2022, father-son-led team Costanzo Financial Group, which manages over $500 million for clients and had been affiliated with Cetera Advisors for 20 years, approached Cetera looking to preserve its independence as the father neared retirement.

Cetera bought that firm in March 2022, “preserving Costanzo Financial Group’s business structure and relationship with Cetera while enhancing firm operations and growth potential,” according to Cetera.

In January 2021, Cetera acquired financial services firm BAR Financial, which managed almost $4 billion in assets on Cetera’s My Advice Architect advisory platform.

And, in March 2021, Cetera acquired financial services firm MAGIS, an RIA focused on providing financial planning and holistic advice to more than 350 households. The ownership change was designed to “fuel additional growth for the firm,” which manages about $500 million for clients, Cetera said.

The investments in CCR and the other advisory practices “diversify and position Cetera for growth, hedging the impact of mercurial market and economic uncertainty, which have affected others in the sector,” Cetera said.

Cetera was recently ordered by a Colorado federal judge to pay close to $9 million to settle allegations brought by the Securities and Exchange Commission in 2019 against the firm over share class selection and revenue sharing infractions.

Cetera must pay close to $6 million in disgorgement, with Cetera Advisors and Cetera Advisor Network paying fines of $1 million each, as well as $990,961 in prejudgment interest, according to the order.

(Pictured: Adam Antoniades, Cetera CEO)