Cetera Financial Group has successfully finalized its acquisition of Securian Financial’s retail wealth management business, demonstrating its continued growth and commitment to providing exceptional services to its clients. Notably, Cetera managed to retain an impressive 91% of Securian’s talented pool of approximately 1,000 advisors. These dedicated advisors currently oversee nearly $50 billion in client assets. This retention rate aligns perfectly with Cetera’s projections for this landmark deal, marking it as the largest acquisition in the company’s history.
The consolidation of broker-dealers has been a prominent trend in the industry lately as firms seek to enhance their scale in response to increasing regulatory, compliance, and technology costs. In line with this trend, LPL Financial Holdings recently announced its acquisition of Crown Capital Securities, which boasts 260 advisors responsible for approximately $6.5 billion in advisory and brokerage assets.
While acquisitions in this space can present challenges, such as the likelihood of advisors migrating to competitors along with their client base, Cetera’s remarkable success in retaining its advisors sets it apart. When Credit Suisse moved its nearly 300 U.S.-based financial advisors to Wells Fargo in 2015, over half of them chose to join rival firms instead. In stark contrast, LPL Financial Holdings successfully retained a remarkable 95% of Waddell & Reed’s roughly 900 advisors when it acquired the company’s wealth management unit in 2021.
Cetera Financial Group’s latest acquisition of Securian’s retail wealth unit exemplifies its strategic approach to growth and expansion. With a focus on delivering exceptional value to both advisors and clients, Cetera continues to solidify its position as a leading player in the industry.
Cetera’s Strong Retention Rate and Expansion Plans
Cetera executives attribute their impressive retention rate to the company’s abundant resources and capabilities. Tom Taylor, the Chief Sales and Growth Officer at Cetera, emphasized the significance of cultural fit in achieving successful mergers: “It’s worth noting that cultural fit is everything in making unions successful, both in the short and long term.” He expressed excitement about serving clients with even more products, solutions, and support in collaboration with Securian.
The familiarity factor has also contributed to a smooth transition for Securian advisors joining Cetera. Cetera reported that nearly 150 former Securian support staff and other employees have seamlessly joined their ranks as part of the deal. Additionally, Cetera has acquired Securian Trust Company, which now operates as a separate entity within Cetera. This acquisition ensures continued service to former Securian advisors and clients, as well as providing support for Cetera’s other advisors.
Former Securian advisors now form a distinct community within Cetera Advisor Networks, branded as Cetera Wealth Management Group. By joining forces with Cetera’s already expansive network of over 8,000 advisors, these advisors greatly enhance Cetera’s offering. With approximately $330 billion in assets under administration as of March 31, Cetera is poised to continue its growth trajectory.
