Cetera Takes Minority Stake in $1.7B Firm

Partner Practice Program

The investment is the latest Cetera has made in recent months as part of its partner practice program, which provides select advisors the option to have Cetera invest in a minority stake in their firm and uses “agile, proprietary growth solutions and technology to grow their business,” Cetera said.

In October, Cetera completed a minority investment in CCR Wealth Management, which manages $2.5 billion in assets. The investment was intended to help CCR Wealth Management accelerate it business growth, Cetera said.

The investments in Prosperity and CCR “diversify and position Cetera for growth, hedging the impact of market volatility and economic uncertainty,” according to Cetera.

Cetera is also teaming with advisors to offer a suite of succession solutions, including advisor-to-advisor support, business continuity solutions and practice monetization, it noted.

Recent examples of the latter include: In early 2022, father-son-led team Costanzo Financial Group, managing over $500 million for clients and affiliated with Cetera Advisors for 20 years, approached Cetera looking to preserve their independence as the father neared retirement.

Cetera acquired Costanzo Financial in March, preserving its business structure and relationship with Cetera while enhancing firm operations and growth potential, Cetera said.

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.

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 approximately $500 million for clients,” Cetera said.

Cetera’s 8,000 financial professionals and their teams oversaw about $322 billion in AUA and $115 billion in AUM as of Dec. 31, it said.